Japanese Tech Titans to Invest $30B in Semiconductors

According to Nikkei News, eight leading Japanese semiconductor companies—Sony, Mitsubishi Electric, Rohm, Toshiba, Kioxia, Renesas, Rapidus, and Fuji Electric—have announced an ambitious investment plan. Between 2021 and 2029, these firms will collectively invest ¥5 trillion (approx. $310 billion) to expand their production capabilities, particularly in power semiconductors, image sensors, and logic semiconductors, which are critical for economic security.

Sony plans to invest ¥1.6 trillion from 2021 to 2026 to increase the production of CMOS image sensors, including building a new factory in Kumamoto Prefecture. As the AI data center and electric vehicle markets grow, other companies are also ramping up their production. Toshiba and Rohm will jointly invest ¥380 billion to boost the output of silicon (Si) and silicon carbide (SiC) power semiconductors. Mitsubishi Electric aims to increase its SiC power semiconductor production capacity to five times the 2022 level by 2026, with a ¥100 billion investment in a new factory in Kumamoto Prefecture. Mitsubishi Electric President Kei Urushima stated, "We are building a system that can compete with global leaders like Infineon."

Historically, Japan held a 50% share of the global semiconductor market in 1988. However, Japanese companies began to fall behind Taiwanese and South Korean competitors in the 1990s, leading to a market share drop below 10% by 2017. Recently, the Japanese government has actively worked to revive the semiconductor industry. It has pledged up to ¥920 billion in support for Rapidus to develop advanced logic semiconductors crucial for AI, with plans to start trial production of 2nm chips by April 2025 and mass production by 2027.

British research firm Omdia reports that in 2023, Japanese semiconductor companies saw a slight increase in their market share to 8.68%, marking the first growth in seven years. Omdia analyst Akira Minamikawa commented, "With significant investments underway, Japanese semiconductor production and market share are expected to recover steadily after 2024."

The Japanese Ministry of Economy, Trade and Industry aims to boost the sales of Japan-produced semiconductors, including those by overseas firms like TSMC, to ¥15 trillion by 2030, tripling the 2020 level.