Aug 08, 2022 17:00:00

Japan is returning to the stage of global semiconductor chip competition again

Global semiconductor sales are declining for the sixth straight month, due in part to concerns about a global recession in

2022 , and the semiconductor industry is in its longest stagnation since the 2018 US-China trade war. I am experiencing As the conflict between the United States and China over Taiwan, which supplies most of the world's semiconductors, is surfacing, the semiconductor industry is beginning to turn its attention to Japan, which was once the world's largest semiconductor producer, according to The New. The York Times reported.

Japan, Once the World Leader in Microchips, Now Races to Catch Up - The New York Times
https://www.nytimes.com/2022/08/04/business/japan-semiconductors-chips.html

On July 29, 2022, the governments of Japan and the United States announced that they would conduct joint development for the mass production of next-generation semiconductors. We have set a policy to Kazumi Nishikawa, director of the Ministry of Economy, Trade and Industry's information industry division, commented in response to the report, 'The world is peaceful and the era where it doesn't matter who supplies semiconductors is over.'

Japan used to produce half of the world's semiconductors, but due to the hollowing out of the domestic industry due to the outsourcing of semiconductor production accompanying globalization, the global share of semiconductor sales as of 2019 has fallen to 10%. Japan continues to lead the world in the chemicals and advanced manufacturing equipment needed for semiconductors, but lack of specialized knowledge and economic problems are preventing the resurgence of the Hinomaru semiconductor, and the setback is the It is estimated that public and private sector investment of 10 trillion yen will be required in 10 years.

Damian Thong, head of research on Japanese equities at financial services giant Macquarie Group, said: ``What the Japanese and U.S. governments are trying to do is address the underinvestment of the last two decades. talked.

In Kyushu, which was also known as the Silicon Island , a movement to catch up has begun. TSMC, a major Taiwanese semiconductor foundry, announced in November 2021 that it would jointly build a new factory in Kumamoto Prefecture with Sony and Denso. In June 2022, the Ministry of Economy, Trade and Industry decided to subsidize up to 476 billion yen for the maintenance costs of the new factory.

With the support of 400 billion yen, the world's largest semiconductor foundry 'TSMC' will build a new factory in Japan, and Samsung will also build a new factory in the United States - GIGAZINE

by Lee Jilin

In addition, at the factory of Japanese semiconductor manufacturer Kioxia in Yokkaichi City, Mie Prefecture, the company and Western Digital of the United States are proceeding with the development of a new manufacturing building with the aim of starting operations in the fall of 2022. It has been decided that 100 million yen of support will be provided.

Overseas experts believe that if Japan becomes more prominent in the field of semiconductors, which are strategic commodities, the geopolitical balance of power will change. Patrick Chen, an analyst at brokerage firm CLSA, said, ``World trade, especially the semiconductor trade, is divided into two camps. and Russia, and possibly North Korea,' he said.

In China, corruption allegations surrounding President Xi Jinping's 'Made in China 2025' policy have led to senior executives at a state-owned investment firm set up in 2014 to invest in the semiconductor sector. At least three people were arrested. There is a possibility that China's self-destruction will become a tailwind for the US side, to which Japan belongs.

On the other hand, many Japanese companies remain cautious about returning production bases to Japan. Japanese semiconductor maker Rohm has received millions of dollars (hundreds of millions of yen) in subsidies from the Ministry of Economy, Trade and Industry (METI) to manufacture energy-efficient industrial chips in its overseas factories. It is said that the support cannot bring the factory back to Japan. Tatsuhide Goto, a company spokesperson, told The New York Times, 'We are concerned about geopolitical risks to our overseas business activities, but we are not considering changing our business model, at least for now. No,' he said.