The Japanese government has announced plans to accelerate the revival of the domestic semiconductor industry by promoting the attraction of TSMC’s Kumamoto facility and establishing JASM. The first fab will begin operations from the end of 2024, while the second fab is planned to manufacture 3nm-generation chips. The government will provide up to approximately ¥1.2 trillion in subsidies.
Japan’s semiconductor industry, which once dominated the world, is making another major push after a long period of decline. Against this backdrop, Japan is exploring a path to recovery from defeat that differs from the conventional mass-production model, centered on Rapidus’s efforts to mass-produce cutting-edge 2nm semiconductors.
The Japanese government is promoting the establishment of JASM to attract TSMC to Kikuyo Town, Kumamoto Prefecture, and has identified securing domestic manufacturing facilities as a key economic security priority. Against the backdrop of the pandemic and geopolitical risks, strengthening the domestic manufacturing base has been positioned as part of the national strategy.
Up to approximately ¥1.2 trillion in government subsidies is being provided to attract JASM. The initiative is intended to connect the strengths of Japanese equipment and materials manufacturers with manufacturing operations in Japan and overseas, and to rebuild the global semiconductor supply chain. The first fab will begin operations from the end of 2024, while production of 3nm-generation chips is planned at the second fab.
The revival of the semiconductor industry in Kyushu, centered on Kumamoto, is expected to accelerate the concentration of related companies, infrastructure development and investment in human resources. It has been suggested that this could provide the foundation for Japan to regain its position as a strategic partner in the global semiconductor supply chain.