ASML strengthens presence in Japan with Hokkaido facility amidst chipmaking surge

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Dutch chip equipment manufacturer ASML is set to establish a new tech support center in Hokkaido, Japan, by the latter part of the next year. This initiative is in collaboration with Rapidus, a Japanese chipmaker focused on mass-producing cutting-edge semiconductors. ASML, a prominent global provider of photolithography equipment, including extreme ultraviolet (EUV) lithography gear, will play a pivotal role in setting up factories and maintenance facilities in Japan. This expansion project will also see ASML increase its workforce in Japan by approximately 40% by 2028.

Amid escalating geopolitical tensions in East Asia, driven by U.S.-China relations, several major international tech companies are venturing into Japan to establish new operations. ASML’s unique position as the sole manufacturer of EUV lithography equipment, crucial for mass-producing advanced semiconductors with a process size of 5 to 7 nanometers or smaller, makes its presence in Japan strategically significant.

ASML’s tech support base will be situated near Chitose, Hokkaido, where around 50 engineers will be responsible for installing EUV equipment on prototype production lines at semiconductor plants being constructed by Rapidus. Their tasks will include assisting with the startup and ongoing maintenance of these facilities. Once Rapidus commences production, Japan will join the ranks of the U.S., Taiwan, South Korea, and Ireland as a location with operational EUV-equipped mass-production lines.

Meanwhile, Taiwan Semiconductor Manufacturing Co. is nearing the completion of a new factory in Kumamoto Prefecture, Kyushu, Japan. ASML has already expanded its technical support base in this region, with plans to increase its engineer count from 10 to 40 individuals. Over the next five years, ASML intends to grow its workforce in Japan by 40%, from approximately 400 employees to around 560 by 2028.

As geopolitical tensions mount, particularly in Taiwan, which accounts for over 20% of global semiconductor production, companies like ASML are striving to develop flexible support systems across their global production bases. Japan’s semiconductor industry, with the presence of numerous related material manufacturers, is gaining prominence in the East Asian semiconductor supply chain.

Simultaneously, U.S. chip equipment manufacturers are also expanding their operations in Japan, reflecting the growing importance of the region in the semiconductor industry.

Japanese chip equipment makers, on the other hand, are expanding their presence overseas, with Tokyo Electron expanding its technology development facility in South Korea, and Hitachi High-Tech building new bases and expanding in the U.S., South Korea, and Taiwan.

(Source: Nami Matsuura | Kosuke Kondo | Nikkei Asia | Elizabeth Beattie | The Japan Times)

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