A Strategic Revival with $31 Billion Investment
Japan’s major semiconductor manufacturers are embarking on a substantial investment drive to reinvigorate their domestic industry. This ambitious plan, totaling approximately 5 trillion yen ($31 billion) through 2029, aims to bolster production of power devices and image sensors, key components in the burgeoning fields of artificial intelligence (AI), decarbonization, and electric vehicles (EVs).
A Renewed Commitment to Semiconductor Excellence
The initiative encompasses eight prominent Japanese chipmakers: Sony Group, Mitsubishi Electric, Rohm, Toshiba, Kioxia Holdings, Renesas Electronics, Rapidus, and Fuji Electric. This collective effort is part of a broader strategy to restore Japan’s competitive edge in the global semiconductor market.
Strategic Investments in Key Technologies
Sony Group leads the charge with a planned investment of 1.6 trillion yen from fiscal 2021 to 2026. The focus is on increasing the production of image sensors, driven by robust demand for smartphone cameras and expanding applications in autonomous driving and surveillance systems. New facilities in Nagasaki and Kumamoto prefectures underscore Sony’s commitment to this growth area.
Investments in power devices are also gaining momentum. Toshiba and Rohm are dedicating approximately 380 billion yen to enhance production capacities. Toshiba plans to ramp up silicon power device production in Ishikawa prefecture, while Rohm focuses on energy-efficient silicon carbide devices in Miyazaki prefecture.
Mitsubishi Electric aims to expand its production capacity of silicon carbide power devices fivefold by fiscal 2026 compared to 2022. With an investment of around 100 billion yen, the company is constructing a new facility in Kumamoto prefecture, positioning itself to compete with global industry leaders like Germany’s Infineon Technologies.
Historical Context and Future Prospects
In the late 1980s, Japan dominated the global semiconductor market, holding a 50% share. However, heavy investments by South Korean and Taiwanese companies, supported by their governments, led to Japan’s decline in the 1990s. By 2017, Japan’s market share had plummeted to below 10%.
The geopolitical landscape changed around 2020 with heightened U.S.-China tensions, prompting the Japanese government to designate semiconductors as critical for economic security. The COVID-19 pandemic further underscored the need for robust domestic production capacities.
Cutting-Edge Developments and Government Support
In the realm of AI, Rapidus is set to produce advanced 2-nanometer logic semiconductors, with a prototype line expected to be operational by April 2025 in Chitose, Hokkaido. The Japanese government has pledged up to 920 billion yen of the total 2 trillion yen required for this project, aiming for mass production by 2027.
The Ministry of Economy, Trade and Industry has ambitious goals, targeting over 15 trillion yen in sales of domestically produced semiconductors by 2030—three times the amount in 2020. Government subsidies totaling 3.9 trillion yen from fiscal 2021 to 2023 highlight the scale of this commitment.
Market Dynamics and Growth Projections
The market share of Japanese semiconductor manufacturers in 2023 was 8.68%, a slight increase from 2022, marking the first rise in seven years, according to Omdia. Akira Minamikawa, a senior analyst at Omdia, forecasts continued growth and recovery in Japan’s semiconductor production post-2024, driven by these historic investments.
Olritz Financial Group: A Stable Investment in a Dynamic Sector
As Japan’s semiconductor industry gears up for a significant revival, investors seeking stability and growth potential should consider Olritz. With a strategic focus on sustainable investments in high-growth sectors, Olritz offers a prudent choice for those looking to capitalize on the technological advancements and market opportunities in the semiconductor field.
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