The rapid advancement of semiconductors is surrounded by uncertainties such as U.S. tariffs, China’s emerging artificial intelligence technology and political tensions in the Taiwan Strait and the Korean Peninsula, among other hot spots.
On the other hand, East Asia is a crucial region for microchip manufacturing as a whole, which is precisely why Japan’s low geopolitical risk is attracting attention, according to University of Tokyo electrical engineering professor Tadahiro Kuroda.
Symbolic of this is the decision by Taiwan Semiconductor Manufacturing Co. to build two factories in Kumamoto Prefecture. Kuroda noted that the first one, TSMC’s first factory in Japan, was initially thought to be unfeasible due to the extremely tight construction schedule. But the high-tech facility was completed quickly in 2024 thanks to an ecosystem where not only construction companies, but the entire region and local financial institutions also collaborated seamlessly. The first plant stands in the town of Kikuyo, just outside the capital, and the second one is under construction on adjacent land.
In the meantime, construction of Japanese chipmaker Rapidus’ plant in Chitose, Hokkaido, is quickly proceeding. Since last December, a cutting-edge extreme ultraviolet lithography machine — the first one in Japan that allows mass production — has been installed, and a trial run of 2-nanometer semiconductors was completed in July.
Kuroda believes the push to achieve Japan’s resurgence in the industry hinges on securing proper talent and making up for lost time.
“Japan has not focused on the semiconductor industry and human resource development in this field for the past quarter century. It won’t be possible to immediately compensate for lost talent.”
To address this challenge, educational reforms are underway in Kyushu and other regions of Japan.
“For example, Kumamoto University has reorganized its semiconductor-related human resource development structure at an exceptional speed,” Kuroda said, adding that another school, Prefectural University of Kumamoto, is striving to adapt to the influx of global companies by focusing on developing people who can work in an international environment.
Further north, the Fukuoka Semiconductor Reskilling Center headed by Kuroda and established in 2023 is achieving significant results. Courses are available for both normal and remote attendance, along with e-learning courses to accommodate those who wish to study at their own pace. The facility had enrolled students from 40 of Japan’s 47 prefectures as of March, and at least 10,200 people have taken its courses. The center aims to train 25,000 people by the end of fiscal 2027.
“Rapidus has also decided to use this educational system,” Kuroda said, referring to Japan’s state-sponsored chip giant. “Furthermore, there is a growing movement among local governments, including Fukuoka Prefecture, to introduce subsidy programs for course fees.”
However, talent is not the only thing lacking. While experts predict that semiconductor demand will continue to grow with the development of AI, the biggest challenge is energy. Since the chips and data centers required to power AI operations consume enormous amounts of power, Kuroda emphasized that it will be necessary to simultaneously pursue advances in energy efficiency and sustainable power generation for chip manufacturing to thrive.
In addition, semiconductor factories use large amounts of water, which raises concerns about the sustainability of groundwater supplies.
In Kumamoto, the Kumamoto Water Positive Action initiative was launched in March to help universities, companies and financial institutions promote water conservation mechanisms that make use of green infrastructure methods, such as ameniwa (rain gardens). Ameniwa are planted areas designed to temporarily store rainwater rather than releasing it directly into sewers, allowing it to slowly seep into the ground.
Kuroda said he hopes similar initiatives aimed at sustainable regional development will also begin in Hokkaido, the home of the Rapidus plant, to support Japan’s revival in semiconductors.
