Insight: Japan is giving its semiconductor business a new lease of life with government cash subsidies aimed at bringing key players in the industry to Japanese shores. The initiative, so far, has proven a resounding success, with TSMC, Micron, Rapidus, Sony Group, Western Digital and Samsung all investing in the country. TSMC’s massive facility in Kumamoto Prefecture, described as a ‘Nightless Castle’, has already opened its doors, churning out chips in a bold 24-hour production cycle.
Impact: Japan’s big chip renaissance was a contributing factor in the Nikkei stock market’s historic February peak that eclipsed even the country’s fabled bubble-era performance, as chip-related stocks led surging gains across sectors. Meanwhile, fresh news out of the U.S. indicates TSMC and Intel suppliers are delaying their U.S. plant plans, citing surging costs of construction materials and labour shortages. This could present even more opportunity for Japan to swoop in with its conveniently weak yen and take the chipmaking throne for good.