US, Japan, Taiwan Semiconductor Cooperation Accelerates: DONG-A ILBO

Japan has passed a bill providing for subsidies for the construction of semiconductor factories in an attempt to position itself as a semiconductor hub by hosting global companies.

Previously, TSMC of Taiwan, the world’s No.1 foundry, and Micron Technology of the United States had decided to build new factories and research facilities in Japan. It appears that the Japanese government has discussed this with the two companies under the table. As the United States, Japan and Taiwan step up cooperation, South Korea rejects the industry’s request for support, delaying construction of a domestic firm’s plant.

The restructuring of the semiconductor supply chain is focusing on locations rather than business bases. US President Joe Biden is offering grants while pushing to attract more local investment. Japan is expected to pass a bill this month to provide around five trillion won in subsidies for the construction of TSMC’s plant in Kumamoto. The country is also likely to provide grants for Micron Technology’s plant in Japan. Japan is nationally building a global production system and expanding technological cooperation.

Additionally, Micron Technology plans to build a D-RAM plant in Taiwan. Western Digital, based in the United States, is working on the acquisition of Kioxia, a Japanese manufacturer of NAND flash. The three countries invest in each other with triangular cooperation and build a new semiconductor cooperation network. This raises fears that South Korean companies will be excluded and faced with competition.

In the process of legislating a special semiconductor law, the ruling Democratic Party of Korea has rejected industry demand to increase the number of students accepted by semiconductor departments at Seoul universities and neighboring regions while adding a series of conditions to be supported, including tax exemption. An exception to the 52-hour work week rule for research and development, which requires intensive work over a short period of time, was also rejected. We do not know when the bill will finally be adopted. All of this will make it difficult for South Korean semiconductor companies to survive.

Japan has a competitiveness of world leader in materials and equipment. Once global companies join the country, South Korea’s semiconductor industry will be threatened. The Organization for Economic Co-operation and Development (OECD) has forecast South Korea’s growth potential to be the lowest among its member countries while the International Monetary Fund is worried about the country’s national debt. Now is not the time to leave the semiconductor industry, which is one of the important pillars of South Korea’s economy, in the hands of corporations. The government should work with them to strengthen global cooperation and supplement the special law to have practical impact.

Source link

About Christopher Easley

Check Also

Biden’s chip push backfires

US President Joe Biden and Commerce Secretary Gina Raimondo (not pictured) hold a virtual meeting …

Leave a Reply

Your email address will not be published.