Could Tokyo Electron be the leading candidate in the domestic rush to build new 300mm fabs? Investment on the order of ¥600 billion and one of the largest government subsidies on record suggest that the next equipment order cycle is beginning.
In July 2026, the Ministry of Economy, Trade and Industry approved up to ¥159 billion in subsidies for a mass-production project for optical communications semiconductors by the Japanese subsidiary of Israel's Tower Semiconductor, and announced that total investment would be approximately ¥600 billion. This is reportedly the largest subsidy to date under the Economic Security Promotion Act. In the same month, Micron held a groundbreaking ceremony for a new cleanroom at its Hiroshima plant, Sony was approved for a subsidy for its new plant in Kumamoto, and TSMC announced that it would introduce 3nm-generation technology at its second Kumamoto plant. In October, US-based GlobalFoundries also announced plans to build a new plant in New York State using 300mm wafers, and reports indicate that Japanese companies' equipment supplies will be involved in this development. These developments show that plans for semiconductor plants involving Japan and Japanese capital are taking concrete shape in a short period of time.
Tokyo Electron develops a broad range of front-end wafer fabrication equipment. It is considered distinctive for its deep penetration of the world's leading-edge fabs, particularly through its coating and developing systems, and for establishing a structure in which its equipment remains in use for a long time after adoption. Its integrated offering, including maintenance, upgrades and parts supply to keep equipment operating, is said to be the core of the company's “two-tiered winning model.”