Japanese govt to pay for over half of chip development project with TSMC

The Japanese government is paying over half of the ¥37 billion funding for a semiconductor research project between around 20 Japanese companies and the Taiwan Semiconductor Manufacturing Company (TSMC) to develop cutting-edge chip technology.

The construction of research facilities at the National Institute of Advanced Industrial Science and Technology in Tsukuba will begin this summer with the project set to kick off in 2022.

Among the Japanese companies involved are chemicals firms Mitsui Chemicals, Sumitomo Chemical, and Asahi Kasei.

Taiwan’s chipmaking plants are among the world's largest and most advanced and the project will boost Japan’s competitiveness in an industry that is grappling with a global semiconductor shortage.

The research will focus on 3D chip assembly technology that makes components denser but still small.

The surge in demand for home electronics that use semiconductors due to the pandemic has led to a chip supply shortage, exacerbated by a US cold snap, a drought in Taiwan, and a fire at Renesas.

The auto industry is one of the hardest hit by the shortage in semiconductors are an essential part of modern tech from smartphones to games consoles.