Pandemic fuels chemical romance with Japan chip-material makers


Once a leader in chip manufacturing, Japan now barely rates in the making of chips themselves while the likes of Taiwan Semiconductor Manufacturing Co (pic) have surged to join the ranks of the world’s most valuable firms. — I-Hwa Cheng/Bloomberg

The accelerated digital transformation across almost every sector amid the coronavirus pandemic is boosting an esoteric collection of Japanese companies that dominate the global supply of semiconductor materials.

Once a leader in chip manufacturing, Japan now barely rates in the making of chips themselves while the likes of Taiwan Semiconductor Manufacturing Co have surged to join the ranks of the world’s most valuable firms. But where Japan does rank is in the supply of niche chemicals needed to make the chips – with the nation’s suppliers holding key positions in almost every part of the manufacturing process, with market shares of almost 100% in some cases.

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