Electrical Equipment / Components & Telecoms

Chip manufacturing has become a “war among the military”. According to a media report on May 31, 2021, about 20 Japanese companies, including electronic component manufacturer Ibiden, will cooperate with TSMC in a joint venture in Japan. The R&D center develops chip manufacturing technology.

The Nikkei Shimbun reported that the research and development center will invest 37 billion yen (approximately US$337 million), half of which will be paid by the Japanese government, but the report did not disclose the specific source of the information.

It should be noted that with the development of 5G infrastructure, autonomous driving technology, data centers and artificial intelligence, demand for chips is also increasing. Japan hopes to cooperate with TSMC to help Japanese domestic semiconductor manufacturers remain competitive.

In response to this, Japan has been making constant moves in the chip field recently, trying to regain its former glory. Japanese media reported on May 26 that the Japanese government hopes that TSMC and Sony will invest 1 trillion yen ($9.2 billion) to build Japan’s first 20-nanometer semiconductor factory to produce chips for automobiles, industrial machinery, and home appliances.

In February 2021, TSMC also stated that it would spend approximately US$178 million to open a materials research subsidiary near Tokyo.

After Asia has become a chip manufacturer, the supply chain disruption caused by the epidemic has made countries around the world aware of the seriousness of the problem and hope to develop their own chip manufacturing industry. In addition to Japan, the European Union is also trying to win over TSMC's European factories. The European Commission hopes that Europe's share of global semiconductor production will double to 20% by 2030, and it will produce the most advanced 2nm chips. In addition, the United States has also held several chip summits, hoping to provide a series of financial and policy support for the development of the chip manufacturing industry.