Japan Looks To Dole Out Record $7B On Chip Gear To Bolster Its Domestic Semiconductor Presence

Japan reportedly proposes to spend a record $7 billion on fab equipment next year, implying an 82% jump year-on-year to boost its position in the global semiconductor market.
Japan's outlay stacks up against a 2% increase forecast for China, and the total amount would be higher than the combined spending of the Europe and Mideast markets, Bloomberg reports.
Taiwan remains the largest spender at $24.9 billion likely in 2024 on chip-fabrication equipment.
Recently, Japan expressed solidarity with the U.S.'s technology embargo on China.
Last Friday, the major U.S. ally committed to restricting exports of 23 types of chipmaking tools, aligning its technology trade controls with U.S. sanctions on China.
The report notes Japan is leveraging its position as a leading producer of equipment and materials necessary to make chips, to woo major chipmakers like Taiwan Semiconductor Manufacturing Co Ltd TSM and South Korea's Samsung Electronics Co Ltd SSNLF.
Japan aims to develop next-generation chips, like solar panels used to harvest clean energy, that would galvanize it's tech industry and economy, the report cites Yeon Wonho, a supply chain analyst.
"Japan wants a breakthrough with chips," Yeon Wonho said. "It wants to team up with countries like the U.S. for joint research while attracting manufacturing facilities to its soil."
China remains a significant market for Japan. However, the Japanese government denies its export controls targeting any particular nation. But the latest moves could restrict China's access to advanced chipmaking technology.
On Sunday, China's Foreign Minister Qin Gang urged Japan to refrain from supporting U.S. efforts to suppress the Chinese semiconductor industry, the report adds.
The U.S. contributes 39% of the total value of the global semiconductor supply chain, while its allies and partners from Japan to Germany account for another 53%, according to a 2021 report.
The report further specifies Japan was a leading semiconductor seller until the 1980s, when it began to cede much of its market to Taiwan, South Korea, and China.
Samsung proposes to spend about 300 trillion won ($229 billion) over the next two decades to build a new chipmaking complex on the outskirts of Seoul.
Samsung looks to build five memory and foundry fabs in a new chip cluster in Yongin by 2042, seeking to attract over 150 local and foreign chip companies.
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