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Japan to Power Up World Chip Sector Dominance Bid

Incoming industry minister Ken Saito promised to continue Tokyo’s efforts to regain Japan’s faded chip glory


Japan’s incoming Economy, Trade and Industry Minister Ken Saito arrives at Prime Minister Fumio Kishida's official residence in Tokyo, Japan December 14, 2023. REUTERS/Issei Kato/File Photo Acquire Licensing Rights
Japan’s incoming Economy, Trade and Industry Minister Ken Saito arrives at Prime Minister Fumio Kishida's official residence in Tokyo, Japan, on December 14, 2023. Photo: Reuters

 

Japan has vowed to double down in its efforts to revitalise its chip manufacturing industry with more promises of subsidies and support.

The country’s new industry minister pledged on Wednesday to continue with the sector push, which has included subsidies for Taiwanese chipmaker TSMC and foundry venture Rapidus.

“The speed of policymaking and execution, which could be called the world’s fastest, has led to concrete results beginning with the decision on the location for TSMC,” industry minister Ken Saito told reporters.

“It is my job to continue and expand upon the sense of speed that former minister Nishimura has built up,” Saito said, referring to his predecessor Yasutoshi Nishimura.

 

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Japanese premier Fumio Kishida last week appointed Saito to lead the powerful Ministry of Economy, Trade and Industry (METI) after purging his cabinet to contain the damage from a financial scandal.

The government’s efforts to regain Japan’s faded chip glory include financial support for Rapidus, which is led by chip industry veterans and aims to mass manufacture 2-nanometre logic chips.

TSMC, the world’s leading contract chipmaker, views the Japanese government as easy to deal with and generous with subsidies and is considering further expansion in Japan beyond its first fab, Reuters has reported.

“Ongoing support for Rapidus will be necessary. Discussions with TSMC regarding next projects are also ongoing,” Saito said.

“We will not blindly continue our support but strictly manage progress and the necessity of backing,” he added.

 

  • Reuters with additional editing by Sean O’Meara

 

Read more:

Japan Pledges $13bn to Boost Chip Sector Leadership Bid

Japan’s Chipmaking Push ‘Impressive’: Euro Research Chief

‘Frustrated’ in US, TSMC Finds Japan Chipmaking a ‘Natural Fit’

Japan Joins Chip Curbs on China, Despite Unease in Tokyo

 

 

Sean O'Meara

Sean O'Meara is an Editor at Asia Financial. He has been a newspaper man for more than 30 years, working at local, regional and national titles in the UK as a writer, sub-editor, page designer and print editor. A football, cricket and rugby fan, he has a particular interest in sports finance.