Investments by Tokyo Electron contribute to Japan's Silicon Avenue regaining its former glory
Tokyo Electron, a leading Japanese chipmaking equipment manufacturer, is making significant strides in the northeast of Japan, also known as the 'Silicon Road.' The company is investing heavily in the region, with the latest addition being a production and logistics center in Oshu, Iwate Prefecture, scheduled for completion in fall 2025.
This new facility, to be built by Tokyo Electron Technology Solutions, a subsidiary handling wafer deposition equipment, will have two floors. The second floor will be dedicated to deposition equipment production, while the first floor will serve as a distribution center, storing parts made by partner companies to shorten lead times.
The new facility is not Tokyo Electron's first venture in the area. The company already has six facilities in the region, with the seventh one under construction on a third development building on Tokyo Electron's premises in Miyagi Prefecture, set for completion in spring 2025.
Tokyo Electron's investments in the region aim to advance mass-production technology several generations ahead. The company's innovation center in Miyagi Prefecture, which opened in 2021, is a testament to this ambition. Here, engineers oversee the use of equipment for mass production at customer's factories, while development sites test cutting-edge technology to manufacture prototypes to the specifications of customers and prepare for mass production.
Clustering together semiconductor-related companies that support the chipmaking process could be key to strengthening the Japanese chip supply chain. Suppliers are also setting up shop in nearby industrial parks, creating a Tokyo Electron supply chain sphere in the Tohoku region.
The 'Flexible Lab' at Tokyo Electron's innovation center uses virtual reality technology to project a three-dimensional image of chipmaking equipment based on design drafts, finalising details like parts and verifying maintainability. Proximity to customers can help Tokyo Electron facilitate troubleshooting with its products.
Despite many Japanese semiconductor manufacturers struggling to compete in the investment race with overseas companies, companies supplying manufacturing equipment and materials still maintain a strong presence. It seems that Tokyo Electron is capitalising on this strength, making Japan's northeast a hub for chipmaking technology.
Interestingly, the 12 lots in the Oshu industrial park have been reserved, with four out of five companies scheduled to set up shop there being related to chip manufacturing. SCREEN Semiconductor Solutions Co., Ltd., another company building a production and logistics center in Oshu, Iwate Prefecture, to be completed in autumn 2025, is one of these companies.
As Tokyo Electron continues to invest in Japan's northeast, the region is poised to become a significant player in the global chipmaking industry. The clustering of chipmaking-related companies could bolster the Japanese chip supply chain and position Japan as a key player in the global semiconductor market.
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