Japan's Silicon Road regains prominence, courtesy of Tokyo Electron's strategic investments
Tokyo Electron Strengthens Japan's "Silicon Road" with New Investments
Tokyo Electron, a leading Japanese chipmaking equipment manufacturer, is making significant strides in the northeast region of Japan, often referred to as the "Silicon Road." The company is investing heavily in this area, with plans to open a new production and logistics center in Oshu, Iwate Prefecture.
The new facility, set to be completed in fall 2025, will be Tokyo Electron Technology Solutions' seventh in Oshu. It will be dedicated to wafer deposition, another core chipmaking process. The first floor of the new building will serve as a distribution center, aiming to store parts made by partner companies and improve supply chain efficiency. The second floor will house production facilities for deposition equipment.
In addition to the new facility, construction is underway on a third development building on Tokyo Electron's premises in Miyagi Prefecture. This building, set to be completed in spring 2025, will feature the "Flexible Lab," which uses virtual reality technology to project a three-dimensional image of chipmaking equipment based on design drafts, for finalizing details and verifying maintainability.
Tokyo Electron Miyagi, a subsidiary of Tokyo Electron, specializes in developing and producing plasma etching equipment, which defines circuit patterns for semiconductor production. The company's development sites test cutting-edge technology, manufacturing prototypes to customer specifications and preparing for mass production.
These developments serve to bring chip technology to practical use by working with the world's top chipmakers. Tokyo Electron's suppliers are setting up shop in nearby industrial parks, creating a supply chain sphere in the Tohoku region.
The company's investments in the northeast are not just about expanding its operations. By clustering semiconductor-related companies that support the chipmaking process, Tokyo Electron is aiming to strengthen Japan's chip supply chain. This strategy could be crucial for the country, which has struggled to compete with overseas companies in terms of investment, while companies supplying manufacturing equipment and materials have maintained a strong presence.
Tokyo Electron is playing a significant role in the revival of the semiconductor industry in Tohoku. The proximity to customers facilitates troubleshooting for its products, ensuring smooth mass production. All 12 lots in the Oshu industrial park have been reserved, with four of the five companies scheduled to set up shop there being related to chip manufacturing.
In 2021, Tokyo Electron Miyagi also opened an innovation center to conduct joint research with other companies. This centre is a testament to the company's commitment to collaborative innovation and pushing the boundaries of mass-production technology several generations ahead.
These strategic investments and collaborations position Tokyo Electron as a key player in the global semiconductor industry, driving innovation and strengthening Japan's position in the field.
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