How Japan goes into massive debt to catch up in semiconductors

2023-11-12 14:41:43

Published on Nov. 12, 2023 at 12:50 p.m. Updated on Nov. 12, 2023 at 3:41 p.m.

Having belatedly realized its immense delay in the most efficient chip industry, the Japanese government is now spending lavishly to try to recreate a cutting-edge semiconductor industry on its soil. On Friday, he announced that he would devote, in his next budgetary extension dedicated to the revival of the economy, an envelope of 2,000 billion yen (12.3 billion euros) to finance the installation of large sophisticated foundries and thus, perhaps, regain its position in a global market that it had once dominated.

In the 1980s, Japan produced, in a very vertically integrated organization, a little more than 50% of the planet’s semiconductors. But following missing the transition to a new generation of components and the rise of a more horizontal model, where chip design and manufacturing are now managed by separate players, the country has seen its market share fall, last year, at 9%.

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