To revitalize its domestic semiconductor chip industry, Japan has launched several measures in recent years, including financial subsidies. According to Japanese media reports, many Japanese companies will invest JPY 5 trillion (Around USD 30.96 billion) to develop the semiconductor business.

Nikkei Asia reported on July 8 that eight Japanese companies, including Sony, Mitsubishi Electric, Rohm, Toshiba, Kioxia, Renesas, Rapidus, and Fuji Electric, will invest JPY 5 trillion in the semiconductor field by 2029, driven by the promising prospects of AI, EV, and carbon reduction markets.

As per Nikkei News, based on the capital investment plans from the fiscal 2021 to 2029 of these manufacturers, in order to rejuvenate Japan’s domestic chip industry, these companies will increase their investments in power semiconductor, sensor, and logic chip fields, which are seen as core technologies to the burgeoning sectors such as AI, decarbonization, and EV.

Among these, Sony plans to invest about JPY 1.6 trillion from fiscal 2021 to 2026 to ramp up its CMOS image sensor production capacity. Sony is a globally renowned image sensor manufacturer, and its chip business head, Terushi Shimizu, previously predicted that Sony’s market share in the global image sensor market would reach 60% by the new fiscal year starting April 2025.

In December 2023, Sony held a completion ceremony for the expansion project at its Nagasaki Technology Center (Isahaya City, Nagasaki Prefecture), which produces image sensors. Sony also announced the plan to build a new image sensor production plant in Kumamoto Prefecture, matching the need to expand the Nagasaki plant to improve its supply system. Nikkei News reported in 2022 that Sony planed to invest several hundred billion yen in the new Kumamoto plant to produce smartphone image sensors, with construction expected to start as early as 2024 and production in 2025.

Toshiba and Rohm, positive about the expanding demand for AI data center and the EV market, project to jointly invest about JPY 380 billion to increase the production of silicon (Si) and silicon carbide (SiC) power semiconductors.

In December 2023, Toshiba announced that it had reached an agreement with Rohm to collaborate on manufacturing power devices. Both companies are expected to make efficiency investment totaling JPY 388.3 billion in silicon (Si) and silicon carbide (SiC) power devices fields, aiming to significantly strengthen their supply capacity and complement each other’s production capabilities.

Rohm plans to build a new plant in Miyazaki Prefecture on Kyushu Island and will allocate JPY 289.2 billion in silicon carbide wafer production. Toshiba will invest nearly JPY 100 billion to set up a cutting-edge 300mm wafer manufacturing plant in Ishikawa Prefecture, central Japan.

Mitsubishi Electric plans to invest JPY 100 billion to build a new factory in Kumamoto Prefecture to produce silicon carbide power semiconductor, expected to commence operation in April 2026. Mitsubishi Electric aims to increase its SiC power semiconductor production capacity to five times the 2022 level by 2026. Mitsubishi Electric President Kei Urishima stated, “We will establish a system capable of rival global leader Infineon.”

In 2022, Renesas announced a plan to invest JPY 90 billion to convert its previously closed Kofu factory into a 12-inch wafer plant to meet the growing demand in the power semiconductor field. On April 11 this year, the factory officially resumed operations. Renesas previously estimated that the factory would start mass-producing IGBT and power MOSFET devices in 2025, doubling the company’s overall power semiconductor production capacity.

As to logic semiconductor industry, Japan’s new semiconductor player Rapidus plans to produce 2nm chip in Hokkaido, with a total investment of JPY 2 trillion, of which the Japanese government decided to subsidize JPY 920 billion. Rapidus plans to start trial production of 2nm logic chip in April 2025 and achieve large-scale mass production by 2027.

To capitalize on the expanding opportunities in artificial intelligence (AI), electric vehicles (EV), and the carbon reduction market, eight Japanese companies, including Sony and Mitsubishi Electric, plan to invest JPY 5 trillion (around USD 30 billion) in semiconductors. According to a report by Nikkei on July 8, this investment is expected to increase the production of image sensors, power semiconductors, logic semiconductors, and other products.

Reportedly, eight Japanese companies, including Sony, are planning to invest JPY 5 trillion in semiconductors by 2029, driven by the optimistic outlook for the AI and carbon reduction markets. The report compiled by Nikkei surveys the equipment investment plans of eight major Japanese semiconductor manufacturers for the period from 2021 to 2029: Sony, Mitsubishi Electric, Rohm, Toshiba, Kioxia, Renesas, Rapidus, and Fuji Electric.

The report indicates that Sony will invest roughly JPY 1.6 trillion from 2021 to 2026 to increase the production of CMOS image sensors and other products, with plans to build a new factory in Kumamoto Prefecture. Additionally, Japanese manufacturers are expanding the production of power semiconductors in response to the growing AI data center and EV markets.

Toshiba and Rohm plan to invest a combined total of around 380 billion yen to increase production of silicon (Si) and silicon carbide (SiC) power semiconductors. Mitsubishi Electric aims to increase its SiC power semiconductor capacity to five times the 2022 level by 2026 and will invest about 100 billion yen to build a new factory in Kumamoto Prefecture. Mitsubishi Electric President Kei Urushima stated that they aim to establish a system capable of competing with its rival Infineon, which is the global leader in the SiC power products.

Reportedly, Japanese semiconductor companies held a 50% global market share in 1988. However, after the 1990s, they lost the competition to Taiwanese and South Korean manufacturers, leading to their withdrawal from advanced process research and development in the early 2000s. By 2017, Japan’s market share had fallen below 10%.

In recent years, the Japanese government has been actively revitalizing the semiconductor industry. In the field of advanced logic semiconductors necessary for AI, the Japanese government has decided to provide up to 920 billion yen in support to Rapidus. Rapidus plans to begin trial production of 2-nanometer chips in April 2025 and commence mass production in 2027.

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(Photo credit: Mitsubishi Electric)

With the highly anticipated opening of TSMC’s Kumamoto fab on February 24th, 2024, multiple Japanese or global semiconductor manufacturers are set to begin large-scale production in newly established plants in Japan.

According to sources cited by TechNews, this development will stimulate the growth and advancement of Japan’s domestic semiconductor supply chain, enhancing Japan’s semiconductor manufacturing capabilities, transitioning from Renesas Electronics’ 40-nanometer process to JASM’s 12-nanometer process.

TSMC Kumamoto Fab Set to Open on February 24

In Kikuyo Town, Kumamoto Prefecture, Japan Advanced Semiconductor Manufacturing (JASM) company, jointly invested by TSMC, SONY, and Japan’s DENSO, is currently constructing a 12-inch fab.

▲ TSMC’s Layout of Global Production Capacity Edited by TrendForce, January, 2024

The facility will employ 12/16-nanometer and 22/28-nanometer process, focusing on the production of chips for automotive electronic applications. The fab is scheduled to open on February 24, with mass production expected to commence in the fourth quarter of 2024.

This shift is regarded as the first step in Japan’s semiconductor revitalization policy. In support of this initiative, the Japanese government has provided a financial subsidy of JPY 476 billion (approximately USD 3.2 billion) to the JASM fab, covering nearly one-third of the total expenditure, which amounts to USD 8.6 billion.

Kioxia and Western Digital Jointly Constructing 12-Inch Plant

NAND Flash memory giants Kioxia and Western Digital are jointly investing in the construction of a 12-inch plant in Yokkaichi, Mie Prefecture. The facility is set to begin preparing for mass production of 3D NAND Flash memory products by March 2024.

Industry sources note that the plant’s construction will cost JPY 280 billion (approximately USD 1.8 billion ), with the Japanese government providing up to 92.9 billion yen (approximately USD 600 million) in subsidies.

Another Kioxia and Western Digital joint venture plant located in Kitakami, Iwate Prefecture, is slated to open in the second half of 2024. Originally scheduled for completion in 2023, the project faced delays due to unfavorable market conditions.

Renesas Electronics Expands Power Semiconductor Capacity

Renesas Electronics is set to launch a new power semiconductor production line in 2024. However, since the company’s Kofu factory in Yamanashi Prefecture closed in October 2014, Renesas is committing JPY 90 billion to install a 12-inch wafer production line at its existing facility to meet the growing demand for power semiconductors, especially in electric vehicles (EVs).

The new production line will enable Renesas Electronics to enhance its capacity for power semiconductors such as IGBT and MOSFET, with plans to achieve mass production by 2024. Renesas Electronics’ expansion plan is expected to receive subsidy support from the Japanese Ministry of Economy, Trade, and Industry.

Toshiba and ROHM Semiconductor Collaborate to Integrate Production Lines for Power Semiconductors

Toshiba and ROHM Semiconductor have reached an agreement to collaborate. Under the agreement, Toshiba’s power semiconductor factory will begin integrating production with ROHM’s newly developed Silicon Carbide (SiC) power semiconductor plant in Kunitomi City, Miyazaki Prefecture. This collaboration is expected to receive government subsidies equivalent to one-third of the investment in the project.

Japan’s New Fab Projects Beyond 2025

Beyond 2025, Japan is set to witness the emergence of several new plants, including Micron Technology’s new 1-gamma (1γ) DRAM production facility in Hiroshima Prefecture.

JSMC, a foundry subsidiary of Powerchip Semiconductor Manufacturing Corporation (PSMC), is collaborating with Japan’s financial group SBI to complete construction by 2027 and begin chip production thereafter.

Additionally, Japanese semiconductor startup Rapidus plans to commence production of 2-nanometer chips in Hokkaido by 2027.

Furthermore, TSMC is currently evaluating plans for its second plant in Japan, expected to be located in Kikuyo Town, Kumamoto Prefecture. Reports suggest that TSMC is set to officially announce the location of the second wafer plant on February 6th.

Earlier discussions by TSMC Chairman Mark Liu regarding the second plant in Japan indicated ongoing evaluations and discussions with the Japanese government. Once the decision to build the second plant is finalized, it is anticipated to manufacture products utilizing 7-nanometer to 16-nanometer process technologies.

Japan’s resurgence in the semiconductor arena is palpable, with the Ministry of Economy, Trade, and Industry fostering multi-faceted collaborations with the private sector. With a favorable exchange rate policy aiding factory construction and investments, the future looks bright for exports.

However, the looming shortage of semiconductor talent in Japan is a concern. In response, there are generous subsidy programs for talent development. Japan is strategically positioning itself to reclaim its former glory in the world of semiconductors.

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• [News] ROHM Eyes R&D Expansion in Power Semiconductor Production Venture with Toshiba

(Photo credit: TSMC)

With a financial boost from the Japanese government, electronic giants ROHM and Toshiba are joining forces in the power semiconductor industry. Collaboratively, they plan to not only enhance production but also delve into the realm of research and development, aiming to expand the capacities for Silicon Carbide (SiC) and Silicon (Si) power semiconductors.

In a joint announcement on December 8th, ROHM and Toshiba revealed their strategic collaboration in power semiconductor ventures, pooling a substantial investment totaling 388.3 billion Japanese Yen (ROHM: 289.2 billion JPY, Toshiba: 99.1 billion JPY). This capital injection aims to boost the capacities for SiC semiconductors, Si power semiconductors, and SiC wafers. The Japanese Ministry of Economy, Trade, and Industry is set to provide a generous subsidy, reaching up to 129.4 billion Japanese Yen for this collaborative venture.

Power semiconductors stand as the key necessity for energy-efficiency in electric vehicles (EVs) and industrial equipment. With a surge in global demand, ROHM concentrates its investment in SiC semiconductors, while Toshiba focuses on Si power semiconductors. The overarching objective is to elevate international competitiveness by fostering a robust collaborative manufacturing alliance.

As per report by the Japan Times, ROHM and Toshiba are embarking on a reciprocal production arrangement for power semiconductors. Toshiba leans significantly on ROHM for SiC semiconductor production, while ROHM entrusts Toshiba with the manufacturing of selected Si power semiconductors. The construction of Toshiba’s new plant in Nomi, Ishikawa Prefecture, sets the stage for Si power semiconductor supply commencing in March 2025. Meanwhile, ROHM’s new plant in Kunitomi, Miyazaki Prefecture, gears up to deliver SiC power semiconductors starting from April 2026.

Both two companies set up their goals in terms of future expansion in capacity. Toshiba envisions expanding power semiconductor capacity to 2.5 times that of the 2021 fiscal year by the 2024 fiscal year. Simultaneously, ROHM aims to elevate SiC power semiconductor capacity to 6.5 times that of the 2021 fiscal year by the 2025 fiscal year, with further expansions to 35 times by the 2030 fiscal year.

ROHM President and CEO, Isao Matsumoto, also shared the insights aiming the collaboration. In an interview with Nikkei Asia released on December 16th, Matsumoto expressed the company’s aspirations to broaden its power semiconductor collaboration with Toshiba, extending beyond production into the research and development.

Matsumoto stated that both companies aim to “discuss collaboration in development” after the launch of the joint production of power devices announced previously.

Matsumoto also emphasized that they will commence with commissioned production, and implied the possibility to enter the next stage. Looking ahead, He hope to explore collaboration involving engineer exchanges and development. When probed about the possibility of this collaboration leading to future business integration, he responded there is not definitive decision by now.

Kyodo News underscored that while Japanese firms have a significant presence in the global power semiconductor market, they often trail behind their European and American competitors, holding a market share in the 20% range. As a result, it is an urgent priority for Japanese firms to enhance international competitiveness, expand scale, and improve efficiency. This collaboration between ROHM and Toshiba is poised to serve as a catalyst for expediting the collaboration of other Japanese firms.

(Image: ROHM)

During an earnings call in November 2023, Isao Matsumoto, President of ROHM Semiconductor, disclosed the company’s plans to the production of 8-inch SiC substrates at its second plant in Miyazaki, Japan, starting in 2024. This is the first time ROHM will produce SiC substrates in Japan.

Notably, the Miyazaki Plant No.2 Project is part of ROHM’s ongoing capacity expansion strategy. The company intends to invest between 170 and 220 billion yen in its SiC business from 2021 to 2025.

For SiC power semiconductor manufacturers like ROHM, it’s imperative to bolster their SiC substrate production capacity. This is driven by two key factors. Firstly, there has been a shortage of substrate materials, which has posed a challenge for the SiC power semiconductor industry. Secondly, the growing wave of electric vehicles has led to an increased demand for SiC power semiconductors.

To thrive in the SiC power semiconductor industry and capture a big market share, major companies are actively investing in expanding their production capacity. They often choose to form supply agreements with suppliers, set up their own production lines, or acquire related businesses.

ROHM previously established a pioneering position in the industry by producing SiC substrates at its plant in Nuremberg, Germany, following the acquisition of SiCrystal, a German SiC substrate manufacturer.

The Miyazaki plant no.2, scheduled to start production in 2024, was originally the Kunitomi plant of Solar Frontier, a subsidiary of Idemitsu Kosan. In July of this year, ROHM announced its acquisition of the assets of Solar Frontier’s former Kunitomi plant, a deal that concluded in October. It’s worth noting that this plant will become ROHM’s largest SiC power semiconductor production hub in Japan.

While pursuing acquisitions, ROHM is also actively expanding its in-house production capacity. According to information on ROHM’s official website, the company currently operates four SiC power semiconductor production plants in Japan, located at its Kyoto headquarters, Chikugo Plant in Fukuoka, Nagahama Plant in Fukuoka, and Miyazaki plant no.1.

Both acquisitions and in-house production strategies help ensure a reliable product supply. However, in the dynamic SiC industry, forward-thinking leaders are eager to secure additional production capacity in advance. Collaboration with established manufacturers is a common approach, and ROHM is no exception.

In June of this year, ROHM signed a long-term supply partnership agreement for SiC power devices with Vitesco. According to this agreement, the combined transactions between the two companies from 2024 to 2030 will exceed 130 billion yen.
(Image: ROHM)