TSMC has already announced plans to build a second fabrication plant in Japan ahead of the completion of its first.

According to Counterpoint's Wang, attracting such companies entering Japan can help the country quickly boost vertical integration across the supply chain and more quickly build up its semiconductor ecosystem.

Japan has also signed collaboration agreements — with allies such as the U.S., the U.K., Taiwan and a number of EU countries — that are aimed at advancing research and development involving next-generation semiconductors.