ASML is making significant moves in Japan to support the chip production efforts of Japanese startup Rapidus. ASML plans to establish a tech support center in Hokkaido by the latter half of the next year, and it aims to increase its workforce in Japan by 40% by around 2028.

Rapidus, backed by substantial funding from the Japanese government, is venturing into the competitive market of manufacturing custom-made, cutting-edge microchips. The company is set to produce chips at the challenging 2-nanometer process node, relying on ASML’s advanced EUV (extreme ultraviolet) lithography tools for the complex circuitry of these chips.

With the backdrop of U.S.-China relations, many overseas tech companies are choosing to establish new operations in Japan. ASML is renowned as the world’s top supplier of photolithography equipment, which plays a crucial role in etching circuits onto computer chips. Furthermore, it is the sole global manufacturer of EUV lithography equipment, a necessity for mass-producing advanced semiconductors at processes of 5 to 7 nanometers and below.

ASML’s expansion in Japan will see a tech support base near Chitose, Hokkaido, where approximately 50 engineers will install EUV equipment on a prototype production line at semiconductor plants being constructed by Rapidus. This support extends to assisting with startup operations and ongoing maintenance.

Once Rapidus commences production, Japan will join the ranks of the United States, Taiwan, South Korea, and Ireland as locations with EUV-equipped mass-production lines. This expansion underlines Japan’s growing importance in the East Asian semiconductor supply chain, given its increasing presence of related material makers.

Amidst rising geopolitical risks, U.S. chip equipment manufacturers are also expanding their operations in Japan. Applied Materials is planning to increase its workforce in Japan by 60% in the coming years, while Lam Research is considering opening a new facility in Hokkaido after relocating and expanding its technical support base in Kumamoto. 

Meanwhile, Japanese chipmaking equipment manufacturers are making their mark abroad, with Tokyo Electron expanding its technology development facility in South Korea and Hitachi High-Tech continuing to build and expand bases in the U.S., South Korea, and Taiwan.

As ASML strengthens its presence in Japan and Rapidus strives to pioneer advanced chip manufacturing, the global semiconductor industry is witnessing a dynamic shift, with Japan emerging as a critical player in this high-stakes arena.

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