Japan to Spend $7 Billion on Chip Gear in 2024
Japan is poised to sharply raise its chip-gear spending in an attempt to boost its position in the global semiconductor market, as it tightens exports amid a US-led push to limit China’s tech ambitions.
Tweet on Japan going all in on the semiconductor industry
Japan to Spend $7 Billion on Chip Gear in 2024!
Japan is poised to sharply raise its chip-gear spending in an attempt to boost its position in the global semiconductor market#semiconductor #chip pic.twitter.com/sSHV4kR2d7
— The_Journalbiz (@the_journalbiz) April 4, 2023
Semi chart on gross spending on chips
Japan is expected to spend $7 billion on fab equipment next year, which would mark a 82% jump from this year — the largest in the world — according to data from SEMI, a global association of chipmaking equipment producers. That compares with a 2% increase forecast for China and the total amount would be higher than the combined spending of the Europe and Mideast markets.
While Taiwan remains the largest spender — $24.9 billion expected in 2024 — on chip-fabrication equipment, Japan’s aggressive investment complements a US push to reconfigure global chip supply routes and sources.
Japan’s goals include developing next-generation chips, such as solar panels used to harvest clean energy, that would galvanize its tech industry and economy, according to Yeon Wonho, a supply chain analyst at the Korea Institute for International Economic Policy.
“Japan wants a breakthrough with chips,” Yeon said. “It wants to team up with countries like the US for joint research while attracting manufacturing facilities to its soil.”
China remains a major market for Japan, and the government denies its export controls target any particular nation. But the latest moves could restrict China’s access to advanced chipmaking technology, and Beijing has said such curbs threaten the stability of the global supply chain.
