Japan Offers Subsidies for Second Chip Fab by Taiwan’s TSMC

108

The Japanese government announced a substantial subsidy of 732 billion yen (equivalent to NT$153.78 billion or US$4.86 billion) for the construction of a second plant in Kumamoto by Taiwan Semiconductor Manufacturing Co. (TSMC) following the inauguration of the first fab.

During the inauguration ceremony, Prime Minister Kishida Fumio expressed his endorsement of plans for a second chip factory located on the southern island of Kyushu in a prerecorded message. Economy, Trade, and Industry Minister Saito Ken provided additional insights, disclosing that the Cabinet had already finalized the subsidy amount for the project.

While the exact location of the second factory remains undisclosed, Minister Saito mentioned that it would be situated approximately a 20-minute drive from the initial plant. He emphasized that one crucial condition for receiving subsidies would be a significant utilization of local sourcing for the factory’s operations.

The first plant, established as a joint venture between TSMC, Sony Semiconductor Solutions, and Denso Corporation under the name Japan Advanced Semiconductor Manufacturing (JASM), has set the stage for the second project, expected to include Toyota among its partners.

During the event, TSMC founder Morris Chang highlighted that the semiconductor production at the new plant, slated to commence in the final quarter of 2024, would mark a rejuvenation of Japan’s chip sector, fostering innovation and economic growth in the region.