A Study on Japan's Automotive Semiconductor Supply Chain

Attracting TSMC plants, and policies to address the semiconductor shortage

2021/11/05

Summary
Ministry of Economy, Trade and Industry's "Semiconductor and Digital Industrial Strategy”
Japanese semiconductor manufacturers that lost their enthusiasm
Attracting TSMC
TSMC's Japanese customers are Sony and Renesas
TSMC dependence is a problem in the automotive microcontroller market
Outlook for the automotive semiconductor shortage

Summary

On October 14, 2021, Taiwan Semiconductor Manufacturing Company, Limited (TSMC) announced at a press conference as the company reported its financial results that it would build a semiconductor plant in Japan. Construction of the plant will begin in 2022, with the aim of starting operations in 2024. “We have received a strong commitment to support this project from both our customers and the Japanese government,” said Zhejia WEI, CEO of the company. The Ministry of Economy, Trade and Industry (METI) lobbied for the construction of this plant at the strong request of the Toyota Group, and it is expected to have a major impact on the automotive semiconductor supply chain in Japan in the future. While explaining the strategy of the Ministry of Economy, Trade and Industry, this report will present the outlook for the future.