Japan is betting big on reclaiming its past dominance in the semiconductor industry with an ambitious $325 billion investment plan over the next decade. Once a global leader in chip manufacturing during the 1980s, Japan lost ground to Taiwan, South Korea, and the U.S. Now, three strategic companies are driving its return to the top: Tokyo Electron, Rapidus Corporation, and JSR Corporation.
Tokyo Electron: Japan’s answer to ASML
Tokyo Electron stands at the heart of Japan’s semiconductor strategy. It designs and manufactures wafer processing and lithography equipment used by global chip giants like TSMC and Intel. Currently, it is building cutting-edge plasma etching tools in Miyagi and expanding logistics operations in Iwate. With machines that aim to be four generations ahead of current tech, the company is essential to Japan’s comeback.
Rapidus Corporation: The national bet for chip manufacturing
Created in 2022 with backing from Sony, Toyota, and NEC, Rapidus is Japan’s boldest move to re-enter the high-end chip market. The firm is developing a fully automated plant in Hokkaido to mass-produce 2 nm chips for AI applications by 2027. Using ASML’s EUV lithography systems and AI-driven automation, Rapidus aims to reduce delivery times by 66% compared to rivals like TSMC.
JSR Corporation: The hidden power behind photolithography
While less known to the public, JSR Corporation holds a monopoly in the production of photoresist materials, which are critical for defining chip patterns. These materials enable precise transfer of circuit layouts onto silicon wafers and are essential for the most advanced chips. JSR’s dominance ensures that Japan retains control over a key part of the supply chain.