Taiwan chip firms shift focus to Japan

Japan’s semiconductor industry is receiving a significant boost with the growing presence of Taiwanese chip firms, thanks in part to the new TSMC plant and the promising outlook for the Japanese sector, Reuters reported on Thursday.

The shift in alliances and priorities in the global chip industry, driven by the United States’ efforts to limit China’s progress in cutting-edge semiconductors, is also a contributing factor.

Alchip Technologies, a fabless chipmaker specialising in customised chips, has begun relocating its research and development engineers from China to Japan. The company is also hiring in Japan, North America, and Taiwan, reflecting its anticipation of growth in the Japanese semiconductor market.

In the last two years, at least nine Taiwanese chip firms have expanded their operations in Japan, according to a Reuters count. For example, eMemory Technology opened an office in Yokohama and benefiting from better communication with Japanese customers.

Additionally, more Taiwanese chip sector companies are considering increasing their presence in Japan, with the weak yen making such decisions more feasible, said a source and another person with knowledge of the matter.

(1 Taiwan dollar = 4.77 Japanese yen)