Japan's smaller chip assemblers join up to cut costs, share data

New industry group seeks to promote coordination and win government support

20250710N Chips

Semiconductors are increasingly important for economic security, but many Japanese players have lost their competitive edge. © Reuters

FUMIE YAKU, KOHEI YAMADA and SHOTARO MORI

TOKYO/FUKUOKA, Japan -- Japanese companies involved in the back-end processing that turns semiconductor chips into finished products are joining up to fend off global competition.

Businesses formed an industry group in April, the first of its kind, that now counts about 30 companies as members. Back-end processing is an increasingly important part of semiconductor production, but most Japanese companies are small- and mid-size regional players that are not very competitive. By cooperating on procedures like equipment upgrades, they believe that production costs can be cut by 20%.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.