[News] Japan, EU, Korea Invest Billions in Semiconductor Chips

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According to data from the Semiconductor Industry Association (SIA), global semiconductor sales in Q3 2024 increased by 23.2% year-over-year and 10.7% quarter-over-quarter.

This year, fields such as AI, big data, and new energy vehicles have driven rapid growth in the semiconductor industry.

Regions worldwide, including China, the United States, India, South Korea, Japan, the EU, and Southeast Asia, are heavily investing in semiconductors, aiming to strengthen control over the chip supply chain and secure a more advantageous position in the global semiconductor market.

Recently, the EU, Japan, and others have announced new initiatives for semiconductor development.

EU: €133 Million Boost for Photonic Chips

According to the Dutch government website, on November 11, the EU announced plans to invest €133 million to establish a photonic integrated circuit (PIC) pilot line in the Netherlands. This initiative aims to enhance Europe’s competitive edge in photonic technology.

The Netherlands’photonic integrated circuit pilot line is part of the PIXEurope project and is expected to begin construction by mid-2025. If progress goes smoothly, it will significantly promote the development and application of photonic technology in Europe.

The Netherlands Organization for Applied Scientific Research (TNO), Eindhoven University of Technology, and the University of Twente have already been awarded the contract for this proposed production line, with Dutch company Smart Photonics also participating in the project.

Photonic technology is considered strategically significant due to its high computational density and low energy consumption, making it an important direction for future technological development.

With the rapid growth of cloud computing, big data, AI, and IoT, there is an increasing demand for faster, more efficient, and lower-energy data transmission, which has spurred the growth of the photonic chip market.

Japan: ¥10 Trillion Investment in Semiconductors and AI

On November 11, Japanese Prime Minister Shigeru Ishiba announced that the Japanese government will provide at least ¥10 trillion (about $65 billion) by fiscal year 2030 to support semiconductor and AI industries.

This funding is part of Japan’s broader ¥50 trillion investment plan for the semiconductor industry over the next decade, with national backing for advanced chip mass production by companies such as Rapidus.

Rapidus plans to collaborate with IBM and Belgium’s research institute Imec, aiming for large-scale production in Hokkaido by 2027. The project requires ¥5 trillion in production funding, with the Japanese government already subsidizing ¥920 billion for Rapidus.

South Korea: Proposed Semiconductor Special Act

According to Business Korea, South Korea proposed a Semiconductor Special Act on November 11, aiming to provide financial support to semiconductor manufacturers through legislation and allow exceptions to the 52-hour workweek under certain circumstances. This proposed law reflects the South Korean government’s strong support and commitment to the semiconductor industry.

The bill specifies a dedicated account for semiconductors to enhance the industry’s competitiveness and stabilize the supply chain. South Korea plans to offer upfront subsidies to semiconductor manufacturers to encourage proactive investments during the decision phase, accelerating industry growth.

Amid international competition, South Korea has been ramping up its semiconductor investments through financial support, industrial park development, and technology innovation. According to Chosun Ilbo, since July this year, South Korea has offered incentives and subsidies to semiconductor companies, launching a ₩26 trillion funding initiative to support the industry. South Korea also plans to establish a new ₩800 billion fund for the semiconductor ecosystem by 2027, with an initial target of ₩300 billion by 2025 to support equity investments in materials, components, equipment, and fabless companies.

(Photo credit: Smart Photonics)