Mitsubishi Chemical Group has announced that it intends to build a new semiconductor materials plant, which will be operational by March 2025. Although the location has not yet been determined, Fukuoka Prefecture is being taken into consideration. The move is in line with Japan's strategy to revitalise the semiconductor industry, given the component's key role in global electronics.

Semiconductor chips are an important part of electronic devices such as mobile phones and computers, and received global attention during the epidemic due to supply chain issues. Although demand for semiconductors declined slightly in 2023 compared to the previous year, industry experts expect a rebound in 2024.

Recognising the importance of semiconductors and the need to increase production, Mitsubishi Chemical's plans are aligned with the Japanese government's investment in the domestic semiconductor industry.In 2021, the government announced its intention to achieve a goal of exceeding annual semiconductor revenues of ¥13 trillion ($87.6 billion) by 2030.

This vision includes government-supported projects like Rapidus, which broke ground on a new factory in Hokkaido on 1 September.

Local and foreign firms are expanding semiconductor-related production in Japan against the backdrop of renewed government attention. TSMC, the world's largest foundry chipmaker, is currently building a plant in Kumamoto Prefecture and has expressed interest in further expansion based on customer demand and government support.

In addition, well-known companies such as Micron Technology and Intel have shown interest in entering the Japanese market. This has resulted in large investments from the US, Europe and South Korea.

The focus on semiconductors comes at a time of escalating tensions between the United States and China. The U.S. aims to limit China's ability to build high-tech industries that can compete with its own. As a result, the semiconductor industry has become an area of strategic importance and geopolitical competition.

As Mitsubishi Chemical's plans for a new semiconductor materials plant progress, the development of this project could strengthen Japan's semiconductor industry and support its technological ambitions. The soon-to-be-completed plant, which is expected to be operational by 2025, underscores Mitsubishi Chemical's commitment to meeting future semiconductor needs while contributing to the growth of the global electronics industry.