Does Japan do it better? This burning question of the 1980s may be returning in a new context: luring semiconductor investment.
Japan does seem to have taken an early lead in the new semiconductor race. Global giant Taiwan Semiconductor Manufacturing is ahead of schedule on a new “fab” in the southwestern city of Kumamoto and planning a second one. Production at its megaproject outside Phoenix was lately delayed by a year till 2025. CEO Mark Liu cited an “insufficient number of skilled workers.”
In Phoenix, Taiwan Semi has to build first and qualify for Chips Act funding later. In theory that would bar it from building anything in China over the next decade, though a waiver is expected. “The U.S. approach is more ambitious, but Japan’s more focused strategy is more likely to succeed,” says Mario Morales, who heads semiconductor research at consultant IDC.