News On Japan

Japan's Competitive Edge in Semiconductor Material

TOKYO - The demand for advanced semiconductors, driven by AI technology, is rapidly increasing, creating high expectations for Japanese semiconductor material manufacturers. We spoke with Takahashi, CEO of Resonac, a leading manufacturer in semiconductor materials, about Japan's competitive advantages.

Japan's Competitive Edge in Semiconductor Material

Resonac, formed from the merger of the former Showa Denko and Hitachi Chemical, is a top-tier semiconductor materials manufacturer. Semiconductor production involves front-end processes for circuit formation and back-end processes for packaging, with Resonac excelling in the latter. The company holds a leading global share in six types of materials used in back-end processes.

Semiconductor materials must protect circuits from thermal shock, ensure insulation, adhesion, and heat resistance. The rise of AI-generated content has boosted the demand for advanced semiconductors. A key focus in enhancing performance is advanced packaging, which involves stacking multiple chips with different functions into a single package. Resonac's materials, particularly their adhesive sheets, are in high demand. These sheets ensure secure attachment of memory chips, connect electrodes, and maintain uniform thinness, enhancing computing power and reducing energy consumption.

To explore Resonac's strengths, we visited their development hub in Kawasaki. The Packaging Solution Center, an open development facility, houses all back-end manufacturing equipment, significantly accelerating development speeds. Additionally, Resonac has established the Joint 2 consortium with 14 other companies to address next-generation semiconductor manufacturing challenges.

Japan remains strong in materials, equipment, and substrates. The challenge lies in maintaining and expanding this strength through collaboration rather than competition. Resonac's formation stemmed from Showa Denko's acquisition of Hitachi Chemical for 960 billion yen, orchestrated by Takahashi, then the head of strategic planning.

Takahashi views Resonac's formation as creating a new company, considering himself a founder. Resonac aims to evolve from a petrochemical-centered company to a global leader in functional materials. A key focus for Takahashi is fostering competitive talent. Imai, the head of HR, emphasizes that the core of the company's value lies in innovative, front-line personnel collaborating across divisions.

At a recent "Moyamoya" meeting in Kawasaki, employees voiced concerns and brainstormed solutions using Resonac's core values. Takahashi and Imai have held 50 such meetings, fostering a culture of open dialogue. Ensuring psychological safety is vital for fostering innovation.

In an interview, Takahashi discussed Japan's semiconductor strength. While Japan's semiconductor companies have declined, equipment and materials companies remain strong, holding the top global shares in many back-end materials. Resonac excels in combining resin-based organic materials with inorganic fillers, a process that requires extensive collaboration with customers to optimize formulations.

The Joint 2 consortium enables simultaneous collaboration with equipment and material manufacturers, enhancing development efficiency. This consortium is crucial for developing next-generation packaging solutions, which involve stacking memory and logic chips on a single substrate.

Resonac is also establishing a similar platform in Silicon Valley, anticipating that tech giants like Google, Apple, and Amazon will design their own AI semiconductors. This US Joint initiative aims to align with these companies from the concept stage, ensuring Resonac's materials meet future needs.

Takahashi sees continuous innovation and collaboration as keys to maintaining Resonac's competitive edge in the rapidly growing semiconductor market.

Source: TBS

News On Japan
POPULAR NEWS

Japan’s World Cup campaign ended in the cruelest possible fashion on June 29, as Gabriel Martinelli scored in the fifth minute of stoppage time to give Brazil a 2-1 victory over the Samurai Blue in their knockout match in Houston. Japan had led in the first half and were still level at 1-1 in the final moments, but Martinelli’s late strike sent Brazil into the Round of 16 and eliminated Japan from the tournament.

Strong earthquakes have continued to shake parts of Japan in recent weeks, with 11 temblors measuring lower 5 or above on the Japanese seismic intensity scale recorded across the country since April 2026.

A Kintetsu Railway train derailed inside Kyoto Station on the morning of June 29, forcing partial suspensions on the Kintetsu Kyoto Line for the rest of the day and causing long delays that hit commuters, students and tourists.

A section of stone wall at Hikone Castle, one of Japan’s few surviving original Edo-period castles and a National Treasure whose main keep remains intact more than 400 years after its construction, collapsed after heavy rain caused by Typhoons No. 7 and No. 8, Hikone city officials said.

Japan advanced to the knockout stage of the World Cup after a 1-1 draw with Sweden on June 25, finishing second in Group F and setting up a Round of 32 clash with Brazil in Houston.

MEDIA CHANNELS
         

MORE Business NEWS

Tokyo stocks edged higher on June 29 as investors bought back selected shares after a sharp AI-led selloff, but gains were capped by caution over high technology valuations, Middle East tensions and a weakening yen that fell to its lowest level against the dollar since 1986.

Tokyo stocks fell sharply on June 26 as investors locked in profits from Japan’s record-setting AI-driven rally, with SoftBank Group and chip-related shares leading a broad retreat after reports that OpenAI may delay its initial public offering.

Japanese households held 2,386 trillion yen in financial assets at the end of March, up 7.1% from a year earlier, as rising share prices, wider use of the new NISA investment program and the weaker yen lifted the value of assets held by individuals.

The sale of religious corporations that operate temples and shrines across Japan is drawing growing scrutiny from authorities, who fear the transactions could be used for tax evasion and money laundering, as brokers openly advertise properties and corporate status for tens or even hundreds of millions of yen.

The Nikkei Stock Average fell for a second straight session in Tokyo as investors locked in profits from a rapid rally in artificial intelligence and semiconductor-related shares, briefly sending the benchmark down more than 1,300 yen before bargain hunting helped it recover part of the loss.

Imabari Shipbuilding, Kawasaki Heavy Industries, and Namura Shipbuilding are aiming to resume construction of liquefied natural gas carriers around 2035, as Japan’s shipbuilding industry looks for a path to recovery after losing much of the global market to lower-cost rivals in South Korea and China.

Finance Minister Katayama held online talks with U.S. Treasury Secretary Scott Bessent as the yen approached its weakest level in about 39 years, with the two sides believed to have discussed possible responses, including foreign exchange intervention.

Every year, thousands of people save money by buying through the Japanese auction process. But many do not realize they've paid too much until the vehicle arrives.