Japan’s Semiconductor Industry: Topical Trends and Strategic Importance

 
PIIS013128120023340-5-1
DOI10.31857/S013128120023340-5
Publication type Article
Status Published
Authors
Occupation: Senior Researcher, Centre for Japanese studies
Affiliation: Institute of China and Contemporary Asia of the Russian Academy of Sciences
Address: 32, Nakhimovsky prospect, Moscow, 117997, Russian Federation
Journal nameProblemy Dalnego Vostoka
EditionIssue 6
Pages113-124
Abstract

The article is dedicated to studying both the long-term and current trends in Japan’s semiconductor industry. Semiconductor production is crucial for the present-day economy, and its importance is only increased by the ongoing process of digital transformation, by COVID-19 pandemic and the international political turbulence that puts strain on the existing global value chains. Moreover, semiconductors are urgently needed by electronics and car producers and by other industries that employ microchips, they could contribute to reducing Japan’s dependence on imported energy commodities. Developing the semiconductor industry is a task stated in official documents of the Japan’s government. However, Japanese semiconductor industry has been in relative decline since the late 1980-s, and the national producers now lag behind the global leaders in terms of technology. Various measures are being implemented to revitalize the industry and reverse the decline (that was partially caused by trade tensions with the US), including state subsidies and increased cooperation with foreign companies. If Japan manages to achieve its ambitious goals, such as doubling the size of the national semiconductor market by 2030 and launching the production of the new-generation microchips, it will lay the ground for other large-scale projects including the creation of ‘Society 5.0’ and the achievement of carbon neutrality. To proceed with the tasks, it is urgent that Japan’s semiconductor industry overcomes the current engineer shortage and employs the globally competitive technology. As the global demand for semiconductors expands, the semiconductor industry could become the engine of growth in other related sectors of Japan’s economy.

KeywordsJapan, semiconductors, digital economy, global value chains, high-tech industry, ‘Society 50’
Received17.11.2022
Publication date20.12.2022
Number of characters30208
Cite  
100 rub.
When subscribing to an article or issue, the user can download PDF, evaluate the publication or contact the author. Need to register.

Number of purchasers: 0, views: 449

Readers community rating: votes 0

1. Shcherbakov G.A. Global'nyj deficit poluprovodnikovyh komponentov kak istochnik sovremennogo krizisa mirovoj avtomobil'noj promyshlennosti (The global shortage of semiconductor components as a source of the current crisis in the global automotive industry). MIR (Modernizaciya. Innovacii. Razvitie). 2022. T. 13. No. 2. S. 270–287. DOI: 10.18184/2079–4665.2022.13.2.270–287 (In Russ.)

2. Aslop T. Leading semiconductor foundries revenue share worldwide 2019–2022, by quarter. Statista. July 1, 2022. URL: https://www.statista.com/statistics/867223/worldwide-semiconductor-foundries-by-market-share/ (accessed: 15.11.2022).

3. Aslop T. Semiconductor industry worldwide by application. Statista. February 10, 2022. URL: https://www.statista.com/statistics/498265/cagr-main-semiconductor-target-markets/ (accessed: 14.11.2022).

4. Bown C.P. How the United States marched the semiconductor industry into its trade war with China. East Asian Economic Review. 2020. V. 24. No. 4. P. 349–388. DOI: 10.11644/KIEP.EAER.2020.24.4.384

5. Feiner L. Apple chipmaker TSMC reportedly considers Japan expansion as China tensions continue. CNBC. October 19, 2022. URL: https://www.cnbc.com/2022/10/19/apple-chipmaker-tsmc-considers-expansion-in-japan-amid-china-tension-report.html (accessed: 16.11.2022).

6. Foster S. US, Japan reaching for a 2-nm chip breakthrough. Asia Times. August 1, 2022. URL: https://asiatimes.com/2022/08/us-japan-reaching-for-a-2-nm-chip-breakthrough/ (accessed: 16.11.2022).

7. Fukuyama M. Society 5.0: Aiming for a new human-centered society. Japan Spotlight. 2018. V. 27. No. 5. Pp. 47–50.

8. Inagaki K., Lewis L. Japan grants Micron $320mn in deepening US chip alliance. Financial Times. September 30, 2022. URL: https://www.ft.com/content/7c7cff55–5eb1–4a2d-8527–61d8788cea17 (accessed: 16.11.2022).

9. Kamakura N. From globalising to regionalising to reshoring value chains? The case of Japan’s semiconductor industry. Cambridge Journal of Regions, Economy and Society. 2022. V. 15. No. 2. Pp. 261–277. DOI: 10.1093/cjres/rsac010

10. Kelly T., Lies E. Japan to invest $500 mln to manufacture advanced chips. Reuters. November 11, 2022. URL: https://www.reuters.com/technology/japan-invest-up-500-mln-new-advanced-chip-development-company-2022–11–11/ (accessed: 16.11.2022).

11. Kim Y. Interactions between Japan’s “weaponized interdependence” and Korea’s responses: “decoupling from Japan” vs. “decoupling from Japanese firms”. International Trade, Politics and Development. 2021. V. 5. No. 1. Pp. 19–31. DOI: 10.1108/ITPD-11–2020–0082

12. Koike S. Strategy for revival of the Japanese Semiconductor Industry. Access Partnership. March 28, 2022. URL: https://accesspartnership.com/strategy-for-revival-of-the-japanese-semiconductor-industry/ (accessed: 16.11.2022).

13. New Japan consortium on advanced chips to begin production in 2027. Kyodo News. November 11, 2022. URL: https://english.kyodonews.net/news/2022/11/148c2f25de20-breaking-news-japan-announces-strategy-for-domestic-production-of-advanced-chips.html (accessed: 16.11.2022).

14. Nintendo to make 20 % fewer Switch consoles due to chip crunch. Nikkei Asia. November 2, 2021. URL: https://asia.nikkei.com/Business/Media-Entertainment/Nintendo-to-make-20-fewer-Switch-consoles-due-to-chip-crunch (accessed: 12.11.2022).

15. Obe M. Japan’s chip industry faces old challenge: scaling up production. Nikkei Asia. May 12, 2022. URL: https://www.ft.com/content/0a1287c6-d866–4c36-b3ba-81aa49883213 (accessed: 16.11.2022).

16. Obe M. Japan’s chip industry squeezed as foreign governments boost investment. Nikkei Asia. September 10, 2021. URL: https://asia.nikkei.com/Business/Business-Spotlight/Japan-s-chip-industry-squeezed-as-foreign-governments-boost-investment (accessed: 12.11.2022).

17. Okada Y. Decline of the Japanese Semiconductor Industry: Institutional Restrictions and the Desintegration of Techno-Governance. Struggles for Survival. Okada Y. (ed.). Tokyo: Springer, 2006.

18. Society 5.0 // Cabinet Office. URL: https://www8.cao.go.jp/cstp/english/society5_0/index.html (accessed: 16.11.2022).

19. Sugiura E., Slodkowski A. Japan’s biggest chipmakers from Toshiba to Sony brace for engineer shortage. Financial Times. June 26, 2022. URL: https://www.ft.com/content/b90da329-a2e5–486a-860f-a20a3afc707a (accessed: 16.11.2022).

20. Urata S. US—Japan trade frictions: The past, the present, and implications for the US—China trade war. Asian Economic Policy Review. 2020. V. 15. No. 1. Pp. 141–159. DOI: 10.1111/aepr.12279

21. 半導体・デジタル産業戦略 (Strategy for Semiconductor and Digital Industry). 経済産業省, 2021年. URL: https://www.meti.go.jp/press/2021/06/20210604008/20210603008–1.pdf (accessed: 16.11.2022). (In Jap.)

Система Orphus

Loading...
Up