Tokyo pledges a further $4.9 billion to help TSMC expand Japan production

Feb24,2024



Tokyo: Japan said it will give TSMC More subsidies of up to 732 billion yen ($4.86 billion) to help build a second location chip manufacturing plant The Taiwanese company inaugurated its first Japanese factory on Saturday.
TSMC's decision to make chips in Japan has become a key component of Tokyo's effort to revive advanced semiconductor manufacturing and harden its industrial supply chains Against disruptions as tensions rise with neighboring China. “The chips will be more advanced than those from the first factory and can be used for AI and autonomous driving, and will ensure that we have Japan should have a stable supply of semiconductors.” The opening of the first factory in Kumamoto on the Japanese island of Kyushu, hosted by TSMC founder Morris Chang.
The latest financial commitment, which will add to the amount of money the world's largest chip maker has pledged for its first factory, could push the taxpayer-funded subsidy for TSMC to more than 1 trillion yen.
TSMC, which is also expanding in the US and Germany, plans to scale up production in Japan before the end of the year. According to the Taiwanese company, the total investment in the venture, including the second plant, will exceed $20 billion.
Upon completion, both factories will have a monthly capacity of more than 100,000 12-inch wafers that TSMC will supply to technology firms and carmakers including Sony and Toyota Motor.
Japan is also investing in a domestic chip venture, Rapidus, which is partnering with IBM and Imec, a European chip research organization, to mass-produce cutting-edge chips on the northern island of Hokkaido from 2027.



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