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

Record rainfall caused 19 rivers to overflow across Fukui Prefecture, flooding roads and homes, triggering landslides and temporarily forcing authorities to issue the highest-level heavy rain emergency warning from early Sunday morning.

Drones were used to deliver food and daily necessities to an isolated mountain community in Himi City, Toyama Prefecture, on August 30 after torrential rain triggered a landslide that cut off road access, while volunteers continued flood recovery work in neighboring Ishikawa Prefecture.

Two typhoons east of Japan were moving northward on August 30, with Typhoon No. 23 (Banlan) overtaking Typhoon No. 22 (Artau), although neither storm is expected to have a direct impact on Japan.

A 9-minute, 13-second drone video filmed inside Aeon Mall Kumamoto two days after the deadly explosion has provided a detailed view of the destruction, showing collapsed ceilings, heavy dust and widespread damage that may have affected between one-third and nearly half of the shopping center.

Strong Typhoon No. 18 was moving northwest through the East China Sea on the night of August 26, gradually pulling away from Okinawa and the Amami Islands as lingering rain, strong winds and high waves were expected to ease. As of 9 p.m. on August 26, the typhoon was over waters north-northwest of Kume Island and moving northwest.

MEDIA CHANNELS
         

MORE Business NEWS

Toyota Motor plans to introduce passenger vehicles equipped with advanced automated driving technology from 2028, allowing drivers to travel with almost no manual operation, including taking their hands off the steering wheel on ordinary roads.

Consumer prices in central Tokyo rose 1.8% in August from a year earlier, with the pace of inflation accelerating for a third consecutive month as higher food prices continued to put upward pressure on household costs.

Tokyo stocks rose on August 28, with the Nikkei 225 closing at 66,405.56, up 273.58 points, or 0.41%, as information-technology, software, automaker and selected semiconductor-related shares gained after a U.S. technology rally, while investors remained cautious before Federal Reserve Chair Kevin Warsh’s Jackson Hole speech.

Japan's toy market continues to expand despite the country's declining number of children, reaching a record 1.1664 trillion yen in fiscal 2025 as manufacturers increasingly target adults and introduce products reflecting social issues ranging from sustainability to investment.

Tokyo stocks slipped on August 27, with the Nikkei 225 closing at 66,131.98, down 130.18 points, as early buying in artificial intelligence and semiconductor-related shares following Nvidia’s strong earnings forecast faded into profit-taking, while the broader TOPIX edged higher for a sixth straight session.

Seven-Eleven Japan and Yamato Transport announced on August 26 that they will introduce self-service shipping machines allowing customers to send parcels without lining up at a staffed checkout counter.

Tokyo stocks rose on August 26, with the Nikkei 225 closing at 66,262.16, up 405.73 points, or 0.62%, as investors bought back selected semiconductor and financial shares, although trading was thin ahead of Nvidia’s earnings and uncertainty remained over artificial intelligence valuations, the yen and Bank of Japan policy.

Tokyo stocks fell on August 25, with the Nikkei 225 closing at 64,980.53, down 0.8%, as investors sold semiconductor and electronics shares ahead of Nvidia’s earnings while a weak yen, elevated bond yields and renewed U.S. pressure on Iran kept risk appetite subdued.