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Data Center News > Blog > Global Market > Japan’s semiconductor industry battles back
Global Market

Japan’s semiconductor industry battles back

Last updated: October 28, 2025 10:48 am
Published October 28, 2025
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Sekiguchi Waichi, CEO, MM Research Institute, Inc.
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Given these geopolitical dangers, TSMC’s institution of a manufacturing unit in Kumamoto Prefecture is a vital step towards stabilizing provide. As a result of semiconductors are small, it’s environment friendly to fabricate them in a single location and ship them by air, which makes them much less suited to distributed manufacturing like vehicles. Nevertheless, if numerous elements make it inconceivable to obtain them from abroad on this approach, it turns into important to have a secure manufacturing base inside Japan. Nationwide coverage firms like Lapidus are additionally extraordinarily vital from the angle of financial safety.

IBM’s involvement as a know-how accomplice with Rapidus is a strategic choice by IBM, which doesn’t have its personal manufacturing capabilities, to decide on Japan as a base for know-how implementation. Micron Expertise’s acquisition of Elpida Reminiscence will also be understood in an identical context. Moreover, the case of Japanese automakers being pressured to droop manufacturing resulting from a semiconductor scarcity reveals how vital semiconductor provides are to the secure operation of your entire manufacturing trade.

Evidently worldwide collaboration would be the key going ahead, reasonably than Japan doing issues alone.

That’s proper. Japan must construct strategic and versatile cooperative relationships with main nations comparable to Taiwan, South Korea, and the USA. We should always construct a deeper cooperative relationship with Taiwan, together with within the geopolitical context of vis-à-vis China. For instance, in August 2024, Chunghwa Telecom, Taiwan’s state-run telecommunications firm, and NTT efficiently performed a connection experiment utilizing APN, a high-speed community know-how for the next-generation optical communications infrastructure IOWN. This linked Taipei and Tokyo, 3,000 km aside, at once, and was an vital stepping stone to accelerating future industrial cooperation.

See also  Japan’s Data Center Market Surges Despite Hurdles

Whereas South Korea has competitiveness surpassing Japan within the fields of residence home equipment and semiconductors, it nonetheless depends on Japan for the procurement of elements and manufacturing gear. It’s fascinating to construct a wholesome cooperative relationship between the 2 nations as rivals who mutually enhance their technological capabilities, reasonably than as enemies. Nevertheless, since South Korea has a powerful want to be primary, ingenuity is required to construct a cooperative relationship.

Japan and the USA have an in depth and inseparable relationship in each financial and safety phrases. IBM’s technical help was a significant increase to the institution of Lapidus. In comparison with the US-China relationship, Japan-US relations are extraordinarily pleasant, and going ahead, we should keep and strengthen this win-win relationship. Actions for Japan-US collaboration have already begun, such because the collaboration between TSMC and Sony, and the collaboration between Lapidus and IBM. It isn’t life like for Japan to revive its trade alone, and a way of steadiness is crucial, leveraging abroad know-how, capital, and human sources whereas strategically defending areas that must be protected.

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TAGGED: battles, Industry, Japans, Semiconductor
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