The Japanese semiconductor industry, once a global leader, is taking decisive steps to regain its competitive edge. Amid the increasing demand for advanced chips fueled by generative artificial intelligence and rising geopolitical uncertainties, key Japanese chipmakers and international players are accelerating investments in cutting-edge manufacturing facilities.
Rapidus, a Japanese chipmaking company, is spearheading the effort with a significant milestone reached last month. The company held a ceremony in Chitose, Hokkaido, to install extreme ultraviolet (EUV) lithography equipment at a plant currently under construction. EUV lithography is critical for producing advanced semiconductors, and Rapidus CEO Atsuyoshi Koike described the achievement as “a solid first step to deliver advanced semiconductors from Japan to the world.” The company aims to begin pilot production in April and mass-produce 2-nanometer chips by 2027.
Backed by shareholders such as Toyota Motor and Sony Group, Rapidus has received substantial government support. Japan’s government has committed up to ¥920 billion ($5.9 billion) in financial assistance, including a ¥100 billion capital injection. The initiative aligns with Japan’s broader economic strategy to bolster its semiconductor industry as a pillar of national economic security.
Other Japanese chipmakers are also ramping up operations. Kioxia Holdings, formerly Toshiba Memory Corp., plans to launch a new factory in Kitakami, Iwate Prefecture, this September to meet the growing demand for memory chips in data centers. Similarly, Mitsubishi Electric has expedited the opening of its power semiconductor plant in Kikuchi, Kumamoto Prefecture, to November 2025, driven by high demand from automotive and industrial sectors.
Foreign investment is further strengthening Japan’s semiconductor ecosystem. Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has started mass-producing logic semiconductors at its Kumamoto facility and plans to construct a second plant by March. Meanwhile, U.S.-based Micron Technology is set to begin advanced memory chip production at its new plant in Higashihiroshima, Hiroshima Prefecture, later this year.
Japan’s government has pledged long-term support for the semiconductor industry, highlighting it as a national priority. A comprehensive economic package adopted in November commits over ¥10 trillion to the semiconductor and AI sectors by fiscal 2030. Additionally, the fiscal 2025 budget allocates ¥332.8 billion to fund next-generation chip production.
With a combination of domestic innovation, international collaboration, and robust government backing, Japan’s semiconductor industry is positioning itself to become a key player in the rapidly evolving global tech landscape.
Author’s Opinion
Japan’s renewed focus on its semiconductor industry is not just a strategic move but a necessary one. As global competition in advanced chipmaking intensifies, Japan’s ability to secure a foothold could redefine its economic and technological future. By aligning government funding with industry innovation, Japan is setting a strong foundation, but sustaining this momentum will require consistent breakthroughs and global partnerships to remain competitive in a rapidly evolving market.
