- Japan reportedly proposes to spend a record $7 billion on fab equipment next year, implying an 82% jump year-on-year to boost its position in the global semiconductor market.
- Japan's outlay stacks up against a 2% increase forecast for China, and the total amount would be higher than the combined spending of the Europe and Mideast markets, Bloomberg reports.
- Taiwan remains the largest spender at $24.9 billion likely in 2024 on chip-fabrication equipment.
- Recently, Japan expressed solidarity with the U.S.'s technology embargo on China.
- Last Friday, the major U.S. ally committed to restricting exports of 23 types of chipmaking tools, aligning its technology trade controls with U.S. sanctions on China.
- The report notes Japan is leveraging its position as a leading producer of equipment and materials necessary to make chips, to woo major chipmakers like Taiwan Semiconductor Manufacturing Co Ltd TSM and South Korea's Samsung Electronics Co Ltd SSNLF.
- Japan aims to develop next-generation chips, like solar panels used to harvest clean energy, that would galvanize it's tech industry and economy, the report cites Yeon Wonho, a supply chain analyst.
- "Japan wants a breakthrough with chips," Yeon Wonho said. "It wants to team up with countries like the U.S. for joint research while attracting manufacturing facilities to its soil."
- China remains a significant market for Japan. However, the Japanese government denies its export controls targeting any particular nation. But the latest moves could restrict China's access to advanced chipmaking technology.
- On Sunday, China's Foreign Minister Qin Gang urged Japan to refrain from supporting U.S. efforts to suppress the Chinese semiconductor industry, the report adds.
- The U.S. contributes 39% of the total value of the global semiconductor supply chain, while its allies and partners from Japan to Germany account for another 53%, according to a 2021 report.
- The report further specifies Japan was a leading semiconductor seller until the 1980s, when it began to cede much of its market to Taiwan, South Korea, and China.
- Samsung proposes to spend about 300 trillion won ($229 billion) over the next two decades to build a new chipmaking complex on the outskirts of Seoul.
- Samsung looks to build five memory and foundry fabs in a new chip cluster in Yongin by 2042, seeking to attract over 150 local and foreign chip companies.
- Photo Via Company
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