American multinational and technology company Intel will partner with 14 Japanese companies to develop technology that will automate their backend chip-making processes, like packaging, according to a report by Nikkei Asia.
Led by Kunimasa Suzuki, the head of Intel's Japanese operations, will include electronics maker Omron, Yamaha Motor, and materials suppliers Resonac, and Shin-Etsu Polymer. The project got the support of Japan’s Ministry of Economy, Trade and Industry and earmarked around $26 billion (4 trillion Japanese yen) to help industries regarded as critical to economic security, like advanced semiconductor manufacturing.
The partnership also aligns with Prime Minister Fumio Kishida’s program to create more competitive supply chains in the domestic market for advanced semiconductors.
“By working together with like-minded countries and regions, we can strengthen the global semiconductor supply chain,” Kishida said at an event organized by semiconductor maker Rapidus Corp. in 2023.
It did not take long for other industry players to follow suit as Taiwan-based TSMC and Korea’s Samsung Electronics announced their plans to build research centers in Japan for back-end production.
Meanwhile, market research firm TechInsights expects the back-end market to grow 13% this year to $12.5 billion.
As of 2024, Japanese companies account for about 30% of global sales of semiconductor production equipment and around 50% of semiconductor materials, according to Japan's Ministry of Economy, Trade and Industry.
