The internationally renowned academic publisher Springer Nature recently published the book Technology Rivalry Between the USA and China, featuring a chapter co-authored by Chang Chih-Cheng, CEO of the Research Institute for Democracy, Society, and Emerging Technology (DSET), and Chiang Min-Yen, Non-Resident Fellow in Economic Security at DSET. Their chapter, Japan’s Grand Geopolitical Strategy on the Semiconductor Industry, examines Japan’s semiconductor strategy amid the U.S.-China tech rivalry, exploring the country’s pursuit of strategic autonomy and efforts to revitalize its semiconductor manufacturing sector.
The chapter highlights Japan’s decline in the semiconductor industry following its peak in the 1980s, with a significant drop in global market share and technological competitiveness. Despite government policies and financial subsidies aimed at revitalizing the industry, Japan continues to face several challenges in the evolving fabless and foundry-based global landscape. These include the relocation of key firms to Taiwan and South Korea, insufficient investment, a widening technological gap, talent shortages, and a lack of domestic demand for high-end chips.
The chapter also explores key industrial policies, such as TSMC’s decision to establish an advanced semiconductor fabrication facility in Japan and the founding of the Rapidas startup. These initiatives demonstrate Japan’s ambition to reclaim a position in the semiconductor supply chain, yet financial and technological challenges persist. Through an analysis of government policy documents and publicly available sources, the DSET researchers provide a comprehensive examination of Japan’s semiconductor strategy, policy rationale, implementation, and potential hurdles, offering valuable insights into global tech competition and geopolitics.
This book delves into the geopolitical and geoeconomic implications of U.S.-China technology competition, focusing on the semiconductor industry and the critical role of chips in contemporary international economics. It brings together diverse perspectives from distinguished scholars worldwide, covering various aspects of the subject. The book’s editor, Peter C.Y. Chow, is a Professor of Economics at The City College of New York, specializing in trade and development, particularly industrialization and technology competition in the Asia-Pacific region. He has also been affiliated with the National Bureau of Economic Research (NBER) and the World Bank, focusing on economic transformation and industrial development in the Indo-Pacific region.