From Taiwan to Kumamoto, Pyeongtaek, and Arizona, nations vie for the top spot in semiconductor manufacturing.
BALI: The race for supremacy in semiconductor manufacturing is intensifying across East Asia and beyond, with nations striving to bolster their capacities in a highly competitive industry. As Taiwan, Japan, South Korea, and even the United States ramp up their efforts, the so-called “Chip 4” alliance seeks to challenge China’s ambitions, creating a dynamic and multifaceted battle for technological dominance.
Japan’s Former Glory
In the 1980s, Japan was the global leader in semiconductor manufacturing, controlling up to 70% of the DRAM memory chip market. However, overinvestment and an economic downturn in the 1990s caused Japan’s dominance to crumble. By 2022, Japan produced less than 10% of the world’s semiconductors, though it remained a critical supplier of materials like silicon wafers and photoresists.
Today, Japan sees the global reshuffle in semiconductor manufacturing as an opportunity for revival. With investments from companies like TSMC, Micron Technology, and Samsung, Japan aims to position itself as a key player once again.
Taiwan and South Korea: Giants in the Arena
Taiwan and South Korea have emerged as global semiconductor powerhouses. Taiwan’s TSMC dominates with nearly 60% of the global market share for advanced chips used in smartphones, supercomputers, and data centers. Meanwhile, South Korea’s Samsung has ambitious plans to surpass TSMC in the 2-nanometer process by 2025, further intensifying the competition.
China’s Struggle for Self-Reliance
China’s rapid growth in legacy chip manufacturing faced a major setback when the United States restricted its access to critical materials and equipment for cutting-edge chips. Despite President Xi Jinping’s decade-long push for technological breakthroughs, China grapples with a skills mismatch and limited access to global supply chains.
The country’s reliance on imports for advanced semiconductors raises questions about whether its ambitious goals can be realized in the near future.
Lessons from Collaboration
Experts argue that cooperation, rather than cutthroat competition, is key to the industry’s growth. Japan’s current strategy reflects this sentiment, emphasizing partnerships with global players to reestablish itself as a semiconductor hub.
Professor Seijiro Takeshita of the University of Shizuoka highlights the importance of complementarity: “Chip manufacturers like Samsung or Hynix can’t function without Japanese materials. A collaborative approach is more productive than the fierce competition of the past.”
A New Era of Chip Wars
As nations compete for dominance in semiconductor manufacturing, the stakes are higher than ever. The industry’s future hinges on innovation, collaboration, and strategic alliances, with each player vying for a leading role in a technologically driven world.
