Localization of Power Chip Manufacturing Japan courted TSMC and Sony to build the first 20nm chip factory

The Japanese government wants TSMC and Sony to invest Y1,000bn ($9.2 billion) to build Japan's first 20nm semiconductor factory to produce chips for cars, industrial machinery and home appliances.

TSMC and Sony may build factories near Sony's image sensor plant in southwestern Japan, according to a proposal from Japan's Ministry of economy, Trade and Industry, but did not provide further details.

Kenichiro Yoshida, Sony's chief executive, declined to comment in Wednesday's strategy briefing, but said "a stable supply of chips is essential for Japan to maintain its international competitiveness". TSMC also declined to comment.

It should be noted that Japan's chip manufacturing industry has lagged far behind. At present, the most advanced semiconductor factory in Japan is the 40nm chip factory operated by Renesa Electronics, which is located near Tokyo. This is in sharp contrast to the 1970s and 1980s, when Japan was the "overlord" of global chips. In 1986, Japan's market share of DRAM chips reached 80%, surpassing its main competitor, the United States, to become the world's number one semiconductor power.

In addition to Japan, the United States, Europe and other places are also making efforts to localize chip manufacturing. Us senators from both parties have basically agreed on the US Innovation and Competition Act, and are expected to spend US $200 billion to promote R & D and manufacturing in semiconductors and other scientific and technological fields, of which US $52 billion will support domestic semiconductor manufacturing in the United States.