Japan Invests $301 Million in Semiconductor Research Organization

Japan Invests $301 Million in Semiconductor Research Organization

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Japan’s trade ministry announced a significant move on Friday, committing up to 45 billion yen ($301 million) in support of an organization focused on cutting-edge semiconductor research. Spearheaded by chip foundry venture Rapidus, the Leading-edge Semiconductor Technology Center (LSTC) is chaired by Rapidus Chairman Tetsuro Higashi and includes esteemed research institutions and universities.

Key Points:

  1. Backing for Semiconductor Research: The Japanese government’s backing signals a strategic push to revitalize the nation’s chip manufacturing base. The support will fuel research into advanced semiconductor technologies, positioning Japan as a key player in the global semiconductor industry.
  2. Rapidus Leads the Charge: Rapidus, a leading chip foundry venture, is at the forefront of the semiconductor research initiative. With its ambitious plans to mass-manufacture 2-nanometer logic chips in Hokkaido, Rapidus aims to compete with industry giants like Taiwan’s TSMC (2330.TW).
  3. Formation of the Leading-edge Semiconductor Technology Center (LSTC): Chaired by Tetsuro Higashi, Rapidus Chairman, the LSTC brings together top-tier research institutions and universities to drive innovation and research in semiconductor technology. This collaboration underscores Japan’s commitment to fostering a robust semiconductor ecosystem.
  4. Japan’s Semiconductor Manufacturing Ambitions: Japan’s investment in semiconductor research reflects its broader ambitions to regain prominence in the global chip manufacturing landscape. With billions of dollars in subsidies, Japan aims to position itself as a competitive hub for semiconductor production.
  5. TSMC’s Confidence in Japan: Taiwan’s TSMC recently announced plans to build a second fab in Japan, scheduled to commence operations by 2027. This vote of confidence underscores Japan’s appeal as a strategic base for semiconductor manufacturing.

The investment underscores Japan’s determination to reclaim its position as a leader in semiconductor technology and manufacturing. With collaborative efforts and strategic initiatives, Japan aims to propel its semiconductor industry to new heights in the global market. ($1 = 149.3100 yen)