Japan is rebuilding its semiconductor industry from scratch.
In 1988, Japan controlled 50% of the global semiconductor market. NEC, Toshiba, Hitachi, Fujitsu were the top names. By 2020, that share had collapsed to 10%. Most observers wrote Japan off as a former player. Then 2022 happened.
The Japanese government announced a $25 billion semiconductor revival fund. Not subsidies for existing fabs. Capital to rebuild from zero. Eight major Japanese companies — Toyota, Sony, SoftBank, NEC, Kioxia, NTT, Denso, and Mitsubishi UFJ — formed Rapidus. The goal: domestic 2nm chip production by 2027. The plant is being built in Hokkaido. Total investment by 2030 is projected at $35 billion.
Then TSMC moved in. Kumamoto plant 1 started production in early 2024. Plant 2 broke ground the same year with a $20 billion budget. The Japanese government covered $9 billion of that directly. Plant 3 is reportedly in planning.
Micron is investing $13 billion in Hiroshima. Samsung opened a research facility in Yokohama. Intel is collaborating with Japanese universities on packaging. Every major non-Chinese semiconductor company now has a Japan strategy.
The target isn't to compete with TSMC at the cutting edge. The target is national resilience. Japan wants its automotive industry, defense industry, and electronics industry to never face another chip shortage like 2021. They're willing to spend a generation's worth of capital to make that happen.
The country that lost the semiconductor race is now buying its way back in — with patience, capital, and policy alignment most countries can't match.
