TSMC and Sony have joined hands in semiconductor plant construction and pledged large-scale investment, while with full support from the Japanese government, Japan has demonstrated ambition to recreate its past semiconductor glory.

TSMC and Sony recently announced plans to invest 800 billion yen to build a new semiconductor plant in Kumamoto Prefecture in western Japan.

The plant is scheduled to begin operations in 2023 or 2024 and is reportedly located adjacent to an image sensor plant under Sony.

Production items are reported to include semiconductors used in cameras, automobiles, and other applications.

In particular, it is known that the Japanese government is likely to provide 50% subsidy support for this plant construction.

Both TSMC and Sony evaded answers on this matter, but TSMC stated in July that it reviewed Japanese government subsidy support for building a plant in Japan.

In connection with this semiconductor plant construction, it is analyzed that the Japanese government has an underlying ambition to recreate Japan's past semiconductor glory.

Japan reached its semiconductor peak in 1988 and produced 50% of the world's semiconductors.

Meanwhile, from the 2010s, Japanese chipmakers on the mainland withdrew from the chip development stage and outsourced advanced semiconductor production to overseas companies such as TSMC.

Japan has largely withdrawn from complete semiconductor product production, but is analyzed to remain a world-leading country in semiconductor equipment and materials.

Japanese companies such as Sumitomo and Shin-Etsu are monopolizing the photoresist market with over 85% of global share, and the market share of premium-grade EUV photoresist exceeds 95%.

In 2019, Japan triggered trade disputes with Korea by restricting semiconductor materials.

Accordingly, TSMC expects that by building a semiconductor plant in Japan, it will have greater freedom in procuring Japan's cutting-edge semiconductor equipment and advanced materials.

Japan is well aware of its strengths in the semiconductor industry, and it is analyzed that through TSMC's investment, Japan is also pursuing simultaneous development of the semiconductor materials and equipment industries.