Japanese Prime Minister Fumio Kishida yesterday visited a new semiconductor plant for which his government has pledged a support of more than ￥1 trillion (US$6.6 billion) to secure a steady supply of chips.
“I believe this project will have positive ripple effects throughout Japan. It is key for not only the semiconductor industry, but also a wide range of businesses such as electric vehicles and electronics,” he said while touring the facility.
The plant, located in the southwestern island of Kyushu, was opened in February and is Japan Advanced Semiconductor Manufacturing Company’s first in the country. It is majority owned by Taiwan Semiconductor Manufacturing Co (TSMC), the world’s largest contract chipmaker.
Photo: Kyodo News via AP
Japanese companies like Sony, Denso and Toyota are investing in the TSMC subsidiary, although the Taiwanese giant retained an 86.5 percent stake. The project underlines Japan’s hopes to regain its presence in the computer chips industry.
Four decades ago, Japan dominated in chips, with Toshiba and NEC controlling half the world’s production. That has since declined to less than 10 percent, amid competition from South Korean, US and European manufacturers, as well as TSMC.
Japan has recently earmarked about ￥5 trillion to revive its chips industry, seeking to become less dependent on imports, in the wake of pandemic-era shortages that affected auto production and other industries for months.
Ensuring an ample supply of the most advanced chips is vital with the growing popularity of electric vehicles, as well as artificial intelligence.
Private sector investment totals US$20 billion for the plants in the Kumamoto region of Japan. The second plant is set to be up and running in three years. The two plants are expected to create 3,400 high-tech jobs directly, TSMC said.
The plant is a bright spot for Kishida, whose popularity has plummeted amid a corruption scandal in his ruling Liberal Democratic Party.
Highlighting Japan’s ties with Taiwan and the US, its most important ally, is one way the prime minister can hope to boost flagging poll numbers.
Kishida is scheduled to meet US President Joe Biden in Washington next week.
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