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Archive:Semiconductor industry in Japan

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Japan's semiconductor industry rose with the support of the government,[1]Template:Reference page with research starting in the 1960s.[2]Template:Reference page Japan rose to hold a majority market share in DRAM by the 1980s.[3] Semiconductor factories largely developed around the capital region and the island of Kyushu.[4]Template:Reference page Research and development has historically been concentrated around the capital.[4]Template:Reference page Leading Japanese semiconductor companies were established manufacturers of various products[4]Template:Reference page before industry-wide restructuring began to occur in the 1990s.[5]Template:Reference page

History

Semiconductor research began in Japan in the early 1960s.[2]Template:Reference page At the time, government agencies made demands such as technology transfers from foreign companies in the industry seeking access to Japan's market. In the 1970s, the Japanese government actively subsidized research and promoted cooperation in the industry. Japanese firms were also aided by domestic import protection, an overvalued dollar, and favorable terms in accessing capital.[1]Template:Reference page As Japanese semiconductor firms were diversified into final systems equipment markets, they focused on supplying in-house demand until the mid-1970s.[2]Template:Reference page In 1976, the VLSI Technology Research Association[6]Template:Reference page was organized by the Ministry of International Trade and Industry (MITI)[7]Template:Reference page for "joint research by five Japanese semiconductor firms" to better serve the computer and telecommunications sectors.[6]Template:Reference page More than 1,000 patents resulted from the project.[6]Template:Reference page

Japan's lower defect rate and insufficient American capacity contributed to Japan's 40% market share for 16K RAM.[8] The low defect rates have been attributed to less contamination through automation.[9]

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Japan entered the 64K RAM market earlier than the US with larger and more "straightforward" chips,[8] which were lower cost and more reliable.[9] By 64K RAM, Japan held a majority of the market share.[10] The share further increased by 256K RAM.[10][11]

Intended to stop Japanese dumping, the 1986 U.S.–Japan Semiconductor Agreement drove up chip prices and contributed to higher profits for Japanese companies.[12] Japanese companies produced more than half of the semiconductors in the world in 1988.[3]

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The Japanese asset bubble burst in the early 1990s and led to a credit crunch, leading Japanese firms to reduce capital equipment spending. The decline of the Japanese industry has also been attributed to factors such as overemphasis on quality, overdependence on the domestic market, the country's start-up venture environment,[13]Template:Reference page and vertical integration.[14]Template:Reference page

In July 1993, a factory in Niihama that made more than half of the world's epoxy resin exploded. The material has been used to package silicon chips and anchor them to circuit boards.[15]

In the late 1990s, Japan's major chip producers began the process of combining operations with each other into companies such as Elpida Memory and Renesas Electronics.[5]Template:Reference page Fujitsu "abandoned the DRAM business" in 1999.[16]

Although most of the chip factories were designed with large quakes in mind,[17] the 2011 Tōhoku earthquake caused damage to the semiconductor supply chain in Japan.[18] One of Renesas's factories, for example, was offline for about three months.[19]

Elpida Memory went bankrupt in 2012 and was acquired by Micron Technology.[14]Template:Reference page The bankruptcy was the largest failure of a Japanese manufacturer since the end of World War II.[20] In the preceding year, Elpida had been tied with Micron as the third-largest DRAM makers in the world.[20]

Toshiba Memory, which was the second-biggest NAND producer in the world,[21] was sold in 2018 to a consortium that included South Korean chipmaker SK Hynix.[22] SK Hynix, however, was restricted from accessing Toshiba Memory's proprietary information.[23]

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In 2022, various Japanese companies partnered with the Japanese government to create a semiconductor venture called Rapidus. After a research phase, Rapidus aimed to eventually operate as a logic chip contract manufacturer.[24]

Silicon Island

Kyushu has been called Japan's "Silicon Island"[25][26]Template:Reference page due to its position as a semiconductor industry hub.[27] The industry was drawn to Kyushu due to its female[28]Template:Reference page labor availability, water resources, hydropower, air transport access,[26]Template:Reference page and cheap land.[28]Template:Reference page Mitsubishi Electric started operating Kyushu's first semiconductor factory in 1967. The next year, NEC opened the world's largest semiconductor factory at the time on the island.[29]Template:Reference page NEC produced about 80% of its 64K RAMs at its three Kyushu plants.[30]

In the mid-1980s, Kyushu's semiconductor production ranked third in the world. However, semiconductor production on the island declined amidst foreign competition.[29]Template:Reference page Kyushu also lost advantages when etching processes stopped needing pure water and when automation for dust control reduced reliance on inexpensive labor. The broader usage of jet airplanes also reduced the benefit of Kyushu's five regional airports. In addition, the stronger yen as well as the new foundry and fabless production process also contributed to the closing of all DRAM factories in Kyushu. Semiconductor firms on the island largely shifted to ASICs.[29]Template:Reference page

In 2022, the Ministry of Economy, Trade and Industry announced subsidies for the construction of a joint foundry in Kumamoto Prefecture by TSMC, Sony, and Denso.[27] The plant was framed as a revival of Kyushu's "Silicon Island" title.[31][32]

References

  1. ↑ 1.0 1.1 Brown, Clair; Linden, Greg (2010). "The Evolution of Japan’s Semiconductor Industry". in Miyoshi, Hiroaki (in en). Have Japanese Firms Changed?: The Lost Decade. London: Palgrave Macmillan UK. p. 14–40. doi:10.1057/9780230294905. ISBN 978-1-349-32115-5. http://link.springer.com/10.1057/9780230294905. 
  2. ↑ 2.0 2.1 2.2 Gotō, Akira, ed (1997). Innovation in Japan. Oxford, England ; New York: Clarendon Press. ISBN 978-0-19-828985-2. 
  3. ↑ 3.0 3.1 Fackler, Martin (2006-01-02). "Japan's Chip Makers Search for a Strategy" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2006/01/02/technology/japans-chip-makers-search-for-a-strategy.html. 
  4. ↑ 4.0 4.1 4.2 Sargent, John (1987). "Industrial Location in Japan with Special Reference to the Semiconductor Industry". The Geographical Journal 153 (1): 72-85. doi:10.2307/634473. https://www.jstor.org/stable/634473?origin=crossref. 
  5. ↑ 5.0 5.1 Brown, Clair; Linden, Greg (2010). "The Evolution of Japan’s Semiconductor Industry". in Miyoshi, Hiroaki (in en). Have Japanese Firms Changed?: The Lost Decade. London: Palgrave Macmillan UK. p. 14–40. doi:10.1057/9780230294905. ISBN 978-1-349-32115-5. http://link.springer.com/10.1057/9780230294905. 
  6. ↑ 6.0 6.1 6.2 Martin, Stephen (1996). "Protection, promotion and cooperation in the European semiconductor industry" (in en). Review of Industrial Organization 11 (5): 721–735. doi:10.1007/BF00214831. ISSN 0889-938X. http://link.springer.com/10.1007/BF00214831. 
  7. ↑ Lincoln, James R.; Choi, Emily W. (2010), written at London, Miyoshi, Hiroaki; Nakata, Yoshifumi, eds., Strategic Alliances in the Japanese Economy: Types, Critiques, Embeddedness, and Change, Palgrave Macmillan UK, doi:10.1057/9780230294905_6, ISBN 978-1-349-32115-5, http://link.springer.com/10.1057/9780230294905_6, retrieved on 2026-10-14 
  8. ↑ 8.0 8.1 Pollack, Andrew (1982-02-28). "JAPAN'S BIG LEAD IN MEMORY CHIPS" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1982/02/28/business/japan-s-big-lead-in-memory-chips.html. 
  9. ↑ 9.0 9.1 Lohr, Steve (1983-06-05). "JAPAN'S NEW TEST IN CHIPS" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1983/06/05/business/japan-s-new-test-in-chips.html. 
  10. ↑ 10.0 10.1 Sanger, David E. (1985-06-16). "PUSHING AMERICA OUT OF CHIPS" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1985/06/16/business/pushing-america-out-of-chips.html. 
  11. ↑ Sanger, David E. (1986-04-18). "I.B.M. CHIP INAUGURATES THE ERA OF THE MEGABITS" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1986/04/18/business/ibm-chip-inaugurates-the-era-of-the-megabits.html. 
  12. ↑ Sanger, David E. (1988-11-09). "A New Japanese Push on Chips" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1988/11/09/business/a-new-japanese-push-on-chips.html. 
  13. ↑ Brown, Clair; Linden, Greg (2010). "The Evolution of Japan’s Semiconductor Industry". in Miyoshi, Hiroaki (in en). Have Japanese Firms Changed?: The Lost Decade. London: Palgrave Macmillan UK. p. 14–40. doi:10.1057/9780230294905. ISBN 978-1-349-32115-5. http://link.springer.com/10.1057/9780230294905. 
  14. ↑ 14.0 14.1 Chang, Jeremy Chih-Cheng; Chiang, Min-yen (2024). "Japan’s Grand Geopolitical Strategy on the Semiconductor Industry". in C.Y. Chow, Peter (in en). Technology Rivalry Between the USA and China. Palgrave Studies in Global Security. Cham: Springer Nature Switzerland. doi:10.1007/978-3-031-76169-0. ISBN 978-3-031-76168-3. https://link.springer.com/10.1007/978-3-031-76169-0. 
  15. ↑ Pollack, Andrew (1993-07-05). "Japan Factory for Making Chip Material Destroyed" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1993/07/05/business/japan-factory-for-making-chip-material-destroyed.html. 
  16. ↑ Tabuchi, Hiroko (2012-02-28). "In Japan, Bankruptcy for a Builder of PC Chips" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2012/02/28/business/global/elpida-memory-japanese-computer-chip-maker-files-for-bankruptcy.html. 
  17. ↑ Clark, Don (2011-03-11). "Japan Quake Rattles Chip Industry" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/SB10001424052748703327404576194903920846360. 
  18. ↑ Matsuo, Hirofumi (2015). "Implications of the Tohoku earthquake for Toyota׳s coordination mechanism: Supply chain disruption of automotive semiconductors". International Journal of Production Economics 161: 217–227. doi:10.1016/j.ijpe.2014.07.010. ISSN 0925-5273. https://doi.org/10.1016/j.ijpe.2014.07.010. 
  19. ↑ Jie, Yang (2021-03-22). "Fire at Giant Auto-Chip Plant Fuels Supply Concerns" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/business/autos/renesas-chip-plant-fire-spreads-concerns-about-global-auto-production-11616414181. 
  20. ↑ 20.0 20.1 Osawa, Juro; Schroter, Shawn (2012-02-27). "Elpida Files for Bankruptcy Protection" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/SB10001424052970204520204577248551168563294. 
  21. ↑ Jun, Kwanwoo (2017-09-28). "SK Hynix Board Clears Role in Toshiba Unit Deal" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/sk-hynix-board-clears-role-in-toshiba-unit-deal-1506562232. 
  22. ↑ "Toshiba completes $18 billion sale of chip unit to Bain consortium" (in en-GB). Reuters. 2018-06-01. https://www.reuters.com/article/business/toshiba-completes-18-billion-sale-of-chip-unit-to-bain-consortium-idUSKCN1IX3O6/. 
  23. ↑ Kharpal, Arjun (2017-09-28). "Toshiba inks deal to sell chip unit to Bain-Apple group for $18 billion" (in en). https://www.cnbc.com/2017/09/28/toshiba-sells-chip-unit-to-bain-apple-group-for-18-billion.html. 
  24. ↑ Jie, Yang; Davis, River (2022-11-11). "Japan Sets Up Advanced Chip Business With Toyota, Sony" (in en-US). Wall Street Journal. ISSN 0099-9660. https://www.wsj.com/articles/toyota-sony-set-up-advanced-chip-business-in-japan-11668133504. 
  25. ↑ "Betting on outsiders" (in en). The Economist. 1998-06-11. https://www.economist.com/asia/1998/06/11/betting-on-outsiders. 
  26. ↑ 26.0 26.1 Feldman, Maryann P. (2008). "Constructing Jurisdictional Advantage in a Mature Economy". Growing Industrial Clusters in Asia : Serendipity and Science. World Bank. doi:10.1596/978-0-8213-7213-5. https://openknowledge.worldbank.org/entities/publication/2c22840f-df2a-552a-adf2-25203b3657a1. 
  27. ↑ 27.0 27.1 Dooley, Ben; Ueno, Hisako (2022-08-04). "Japan Once Led the World in Microchips. Now, It’s Racing to Catch Up." (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/2022/08/04/business/japan-semiconductors-chips.html. 
  28. ↑ 28.0 28.1 Sargent, John (1987). "Industrial Location in Japan with Special Reference to the Semiconductor Industry". The Geographical Journal 153 (1): 72-85. doi:10.2307/634473. https://www.jstor.org/stable/634473?origin=crossref. 
  29. ↑ 29.0 29.1 29.2 Nabeshima, Kaoru; Yamashita, Shoichi (2008). "Kitakyushu: Desperately Seeking Clusters". Growing Industrial Clusters in Asia : Serendipity and Science. World Bank. doi:10.1596/978-0-8213-7213-5. https://openknowledge.worldbank.org/entities/publication/2c22840f-df2a-552a-adf2-25203b3657a1. 
  30. ↑ Lohr, Steve (1983-06-05). "JAPAN'S NEW TEST IN CHIPS" (in en-US). The New York Times. ISSN 0362-4331. https://www.nytimes.com/1983/06/05/business/japan-s-new-test-in-chips.html. 
  31. ↑ "Chip Titan TSMC's First Factory in Japan Has to Contend With Horrible Traffic" (in en). Bloomberg.com. June 8, 2023. https://www.bloomberg.com/news/features/2023-06-08/chip-titan-tsmc-s-first-factory-in-japan-has-to-contend-with-horrible-traffic. 
  32. ↑ "America’s hoped-for Asian semiconductor pact looks tricky" (in en). The Economist. 2023-02-02. https://www.economist.com/asia/2023/02/02/americas-hoped-for-asian-semiconductor-pact-looks-tricky. 

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