Japanese Prime Minister Fumio Kishida embarked on a visit to a state-of-the-art semiconductor facility on Saturday, backed by his government's pledge of over 1 trillion yen ($7 billion) to ensure a stable chip supply.
During his tour of the plant situated on the southwestern island of Kyushu, Kishida expressed optimism about the facility's wide-ranging benefits, emphasizing its significance not only for the semiconductor sector but also for industries such as electric vehicles and electronics across Japan.
This new plant, primarily owned by Taiwan Semiconductor Manufacturing Co., marks the Taiwanese giant's inaugural venture into Japan. Kishida extended sympathies to Taiwan following a recent earthquake tragedy, underscoring the strong bilateral ties.
Major Japanese corporations, including Sony, Denso, and Toyota, are investing in the subsidiary responsible for the plant, with TSMC retaining an 86.5% stake.
This initiative reflects Japan's ambition to regain prominence in the global chip market after its previous dominance waned over the years.
In response to pandemic-induced chip shortages impacting various sectors, Japan has allocated approximately 5 trillion yen ($33 billion) to revitalize its semiconductor industry, aiming to reduce reliance on imports.
Securing an adequate supply of advanced chips is crucial given the rising demand for electric vehicles and artificial intelligence technologies.
The investment landscape includes a total of $20 billion from the private sector for plants in southwestern Japan's Kumamoto region, with plans for a second plant to commence operations within three years.
These developments are projected to generate 3,400 high-tech jobs directly, according to TSMC.
Amidst declining public support due to a political scandal, Kishida views initiatives like this semiconductor project as opportunities to strengthen Japan's alliances, particularly with Taiwan and the United States.
His upcoming meeting with President Joe Biden in Washington signifies efforts to bolster his political standing.
Given the geopolitical tensions surrounding Taiwan and China's territorial claims, semiconductor production has emerged as a strategic focal point.
The United States has imposed export controls on advanced microchips, reflecting concerns over potential military applications. TSMC's expansion plans in the U.S. and Europe highlight Japan's attractiveness as a semiconductor hub.
Furthermore, Tokyo is actively supporting semiconductor projects nationwide involving international players like Western Digital and Micron, alongside Japanese firms such as Renesas Electronics, Canon, and Sumitomo.
These endeavors underscore Japan's commitment to revitalizing its semiconductor industry and enhancing global technological leadership.