Japan Takes Taiwan’s Helping Hand On Long Road To Chip Revival

Japan Takes Taiwan’s Helping Hand On Long Road To Chip Revival

TSMC, the leading Taiwanese chipmaker, inaugurated its inaugural Japanese plant, marking its crucial involvement in Tokyo’s ambitious endeavour to revitalize its semiconductor manufacturing sector. Japan’s reliance on TSMC emphasises its dominant position in the foundry business and concerns over China’s technological advancement.

TSMC’s presence in Japan has catalyzed investment in a sector pivotal for economic security, complementing Japan’s support for domestic ventures like Rapidus. By 2027, Taiwan is expected to control two-thirds of advanced foundry capacity, with Japan aiming for a 3% global share.

With investments exceeding $20 billion, TSMC plans mass production later in the year and a second plant, boosting Japan’s chip access. Collaborations with Sony and Toyota aim to exceed 100,000 12-inch wafers monthly, vital for electronics, automotive, and defence.

Japan’s conducive work culture and supportive government have appealed to TSMC, which has facilitated technology export approvals, especially for advanced node technologies below 16 nanometers. Japan’s expertise in photoresists, image sensors, and packaging augments chip performance, attracting Taiwan’s chip companies to support TSMC and participate in Japan’s growing chip sector.

TSMC’s entry into Japan is an important step toward the semiconductor industry’s recovery, promoting technological exchange and economic growth. Taiwan-Japan cooperation has potential for the world chip market as Japan welcomes its newfound vibrancy.