Intel Corp.'s Japanese arm has formed a research body in collaboration with 14 domestic firms to automate "back-end chipmaking processes," such as packaging, as Japan and the United States step up efforts to strengthen chip supply chains, the new entity said Tuesday.

The Tokyo-based Semiconductor Assembly Test Automation and Standardization Research Association was established on April 16 to implement automation technologies by 2028 under its president, Kunimasa Suzuki, who is also president of Intel K.K.

Omron Corp. and Murata Machinery Ltd., both based in Kyoto, will be among the firms overseeing the research and development of automated conveyance and storage systems, while Yamaha Motor Co. and Resonac Holdings Corp. will take charge of assembly and testing processes.

Sharp Corp. will be responsible for designing and operating pilot lines.

"A key goal of this commercialization is that SATAS solutions are implemented in both existing (brownfield) and new (greenfield) factories," the association said in a release.

Back-end processes are seen as ideal for automation as they are considered more labor-intensive than "front-end processes," where electronic circuit designs are etched onto silicon wafers.

The establishment of the new association aligns with Prime Minister Fumio Kishida's government's efforts to enhance domestic supply chains of advanced semiconductors, aiming to ensure their stable availability amidst escalating trade tensions between the United States and China.

The government has recently said it would offer nearly 1 trillion yen (S6.5 billion) in subsidies to Rapidus Corp., a chipmaking venture established in 2022 by eight major Japanese companies, including Toyota Motor Corp., to produce state-of-the-art 2-nanometer chips.

Of the planned subsidies, some 50 billion yen will be spent to help develop back-end processing technology, said the industry ministry, which hopes the Japanese chip industry will launch domestic production of next-generation semiconductors.

Japan's chip sector seeks to enhance manufacturing efficiency to reduce costs amid intense competition from Southeast Asian countries with lower labor costs.

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