Overview
Reports suggest that Taiwan’s semiconductor giant, TSMC, is exploring the possibility of setting up advanced chip packaging capacity in Japan. This move could significantly boost Japan’s semiconductor industry.
Background
Sources familiar with the matter revealed that discussions are in the early stages, with TSMC considering introducing its chip-on-wafer-on-substrate (CoWoS) packaging technology to Japan. This technology enables stacking chips for enhanced processing capabilities, space efficiency, and reduced power consumption.
Market Trends
The global demand for advanced semiconductor packaging is on the rise, driven by the increasing use of artificial intelligence applications. Major players like TSMC, Samsung Electronics, and Intel are expanding their packaging capacity to meet this growing demand.
TSMC’s Strategy
TSMC plans to double its CoWoS output by 2024 and further expand in 2025. The potential investment in Japan would complement TSMC’s existing operations in the country, including collaborations with leading Japanese companies like Sony and Toyota.
Japan’s Semiconductor Industry
Japan aims to strengthen its semiconductor industry, supported by a robust ecosystem and customer base. The country’s industry ministry is optimistic about accommodating advanced packaging initiatives, creating a supportive environment for such endeavors.
Government Support
The Japanese government’s proactive stance in revitalizing its semiconductor sector has attracted global chip firms like TSMC and Intel. Substantial subsidies are being offered to encourage semiconductor development, enhancing economic security.
Industry Developments
Intel is considering establishing an advanced packaging research facility in Japan, while Samsung Electronics is setting up a similar facility in Yokohama. These initiatives, supported by government incentives, aim to strengthen partnerships with local companies and compete in high bandwidth memory chips.