Request to Expand Semiconductor Investment in Japan
Actively Attracting with Subsidy Support Under Review
Japanese Prime Minister Fumio Kishida met with the heads of seven major global semiconductor companies, including Samsung Electronics, to request expanded investment. The meeting attracted worldwide attention in the semiconductor industry as the CEO of the American company Micron Technology reportedly responded by pledging an investment of 500 billion yen (approximately 5 trillion won) in Japan.
On the 18th, at the Prime Minister's Official Residence in Tokyo, Japanese Prime Minister Fumio Kishida (center) held a meeting with representatives from seven foreign semiconductor manufacturers and research institutions, including Samsung Electronics. Tokyo=Kyodo News/Yonhap News Photo by Kyodo
According to the Nihon Keizai Shimbun (Nikkei) on the 18th, Prime Minister Kishida stated during a meeting with representatives of seven foreign semiconductor giants held at the Prime Minister's Official Residence that morning, "The government will further increase direct investment into Japan to support the semiconductor industry."
Kishida also said he would discuss this issue at the upcoming Group of Seven (G7) summit starting on the 19th. He added, "We will lead discussions on the global challenge of supply chain stabilization and strengthen cooperation."
Attending the meeting were Samsung Electronics Semiconductor (DS) Division President Kyung Kye-hyun, TSMC Chairman Liu Deyin, Intel CEO Pat Gelsinger, and Micron Technology CEO Sanjay Mehrotra, among other semiconductor industry leaders. Also present were Applied Materials CEO Flap Laser, IBM Vice President Dario Gil, and IMEC Semiconductor Research Institute Vice President Max Migliori.
From the Japanese side, in addition to Prime Minister Kishida, Minister of Economy, Trade and Industry Yasutoshi Nishimura and Chief Cabinet Secretary Seiji Kihara attended. After the meeting, Minister Nishimura held a press conference stating, "Many companies expressed their strong intention to actively increase investment in Japan."
During the meeting, Micron Technology announced plans to invest up to 500 billion yen (approximately 5 trillion won) in Japan, introducing facilities capable of producing cutting-edge products at its Hiroshima plant. Micron plans to adopt state-of-the-art extreme ultraviolet (EUV) lithography equipment and begin producing next-generation semiconductors from 2026.
Samsung Electronics explained its development of a research and development base in Yokohama to Prime Minister Kishida, and Taiwan's TSMC reportedly mentioned plans to expand investment within Japan. Intel announced intentions to strengthen cooperation with Japanese companies and semiconductor manufacturing equipment firms.
Inside and outside Japan, this meeting is being evaluated as a strong indication of the Japanese government's determination to revive the domestic semiconductor industry. Japan, which once boasted over 50% market share in the semiconductor industry, has shown a prolonged decline after ceding ground to South Korea and Taiwan.
In response, the Kishida Cabinet is accelerating efforts to attract investment with the goal of tripling domestic semiconductor sales to about 15 trillion yen (approximately 146 trillion won) within 30 years. Since 2021, Japan has been pursuing a "Semiconductor-Digital Industry Strategy," investing a cumulative budget of about 2 trillion yen to revitalize the semiconductor sector.
The Japanese government is currently considering subsidies worth hundreds of billions of yen for global semiconductor companies and plans to include semiconductor industry support measures in the economic and fiscal management guidelines to be prepared next month.
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