Japan Intends To Develop A Long-Term Strategy To Strengthen Semiconductor Resilience.

Japan Intends To Develop A Long-Term Strategy To Strengthen Semiconductor Resilience.

The vision Tokyo has for the semiconductor sector is very impressive. In the same way that the United States has identified chips, along with large-capacity batteries, pharmaceuticals, and critical minerals, as sectors that are critical for the country’s economic and broader security moving forward, Japan has placed semiconductors at the top of its priority investment list.

Tokyo, on the other hand, is as concerned with meeting the changing demands of the demand side as with the supply side. That is to say, although Japan wants to increase domestic chip production in order to improve resilience, it is also considering structural alterations in the global semiconductor supply chain.

The factory’s construction is set to begin next year, with mass production beginning in 2024. Though TSMC (Taiwan Semiconductor Manufacturing Co) typically controls 100 percent of its overseas factories, company CFO Wendell Huang said the business does not rule out joint ventures with other companies or its customers.

Wei stated that TSMC (Taiwan Semiconductor Manufacturing Co)has done its share to assist its customers in the ongoing vehicle chip crisis. “However, we cannot solve the entire industry’s supply difficulties, and current events such as an [rise] of the pandemic in Southeast Asia are also harming the supply of car chips.”

TSMC’s decision to build a plant in Japan is a step away from the company’s decades-long strategy of concentrating production in Taiwan, where it conducts research and development and runs vast manufacturing facilities. Sony’s involvement would be yet another surprise, given TSMC(Taiwan Semiconductor Manufacturing Co) hasn’t allowed partners or clients to own equity in its chip facilities in more than two decades.