The Japanese construction company Kajima Corp. has experienced a boom in constructing semiconductor factories, which has led to an increase in its revenue and stock price. Now the Tokyo company must contend with harsh conditions on the northern island of Hokkaido to keep up its success.
Kajima helped Japan achieve a breakthrough a fast start in developing its chip industry after governments around the globe recognized the necessity for reliable silicon supplies amid rising geopolitical tensions. The company led the rapid construction of a brand new manufacturing facility for Taiwan Semiconductor Manufacturing Co. on the southern island of Kyushu, bringing the project to fruition before the U.S. government could pay its first subsidy check to TSMC and other chipmakers for American factories.
This construction boom accelerated Kajima’s growth, and its share price rose 86% last 12 months. But the corporate’s next project presents an infinite challenge: It is to construct a good more advanced chip factory for state-backed Rapidus Corp. responsible, in a terrain where snow, frozen ground and the remoteness from large population centers result in significant complications. Koichi Takano, Kajima’s general manager for the project, guarantees that this chip factory can even be accomplished on time.
“Less experienced teams simply cannot handle the task,” he said via Zoom from the development site. “We, on the other hand, have seen, touched and built the latest generation of clean rooms for chip customers.”
That’s not an exaggeration. Kajima has led the event of not less than 10 chip factories over the past decade, where semiconductors are made in so-called clean rooms which might be filtered of contaminants within the air. The unremarkable, 184-year-old company has quietly change into Japan’s secret weapon for constructing its semiconductor industry.
However, Rapidus will bring latest difficulties. The state-backed chip startup plans to launch pilot lines next 12 months before targeting mass production of 2-nanometer semiconductors in 2027. Kajima, which began work on the factory in September, needs to finish about half of the ability by the top of this 12 months. Therefore, chipmaking equipment providers reminiscent of ASML Holding NV can begin installation from December.
At the identical time, construction in Hokkaido is becoming increasingly expensive. Competition for staff has increased attributable to chronic labor shortages and strict workplace regulations. Ski resorts on the island, including the famous Niseko, attempt their very own construction boom. Prices for materials and heavy equipment have skyrocketed attributable to the weak yen and Russia’s war against Ukraine.
The bottleneck has set back other developments. Yodobashi Holdings Inc. gave up on constructing a luxury hotel within the metropolis of Sapporo, while Hokkaido Railway Co. postponed its redevelopment plans. In Niseko, real estate developers have halted latest projects attributable to rising costs.
Rapidus hasn’t slowed down in any respect. While construction projects within the snowy region normally pause during winter, Kajima hasn’t paused for a single day. Instead, large portions of the 5.29-acre site were covered with tents to guard the bottom from snow, after which heaters and fans were used to maintain the whole area warm so construction could proceed. Cold temperatures result in countless complications, including the danger of damaging the concrete because it dries.
Kajima keeps employees on site 24 hours a day, even though it costs not less than 25% more to have employees work nights and weekends. The company even made special arrangements to rent local contractors to clear snow from the roads surrounding the development area before staff arrived at 6 a.m
Denzai KK, an organization that supplies cranes to the positioning, said Kajima made it clear from the beginning that schedule took precedence over cost.
“They said the work shouldn’t stop no matter what,” Kohki Uemura, Denzai’s chief executive, told Bloomberg News, estimating that Kajima is paying 10% to fifteen% more for newer, top-of-the-line cranes to attenuate complications.
Kajima’s Takano acknowledges that meeting the December deadline comes with risks, including labor shortages or an unexpected cost increase, but he has outlined every step toward completion – with contingencies for virtually every scenario.
Kajima plans to soon hire as much as 4,500 staff and start night shifts to hurry up the method. The company is primarily recruiting people from Hokkaido and can house the employees in nearby apartments.
One lesson Kajima learned from the Kumamoto project was that staff caused traffic jams after they drove their very own cars to the positioning. So the team provided shuttle buses for workers and asked them not to make use of their very own cars.
Takano, 59, conveys the boldness of somebody who has worked on such complex projects for 4 many years, including a chip factory in Mie for Kioxia Holdings Corp. in 2022. “The progress is exactly what we had planned,” he said.
Takano said his personal goal is to pass on his expertise to the subsequent generation of Kajima staff. His team has worked together for greater than twenty years and is nearing retirement.
“This is one of my last chances to pass the baton from the generation of old men to young people,” he said. “The Rapidus project is definitely very difficult. But we have to be lucky enough to experience it.”
