TSMC’s Japanese Operations Will Receive $4.9 Billion From Tokyo

(CTN News) – TSMC (2330.TW) has been awarded up to 732 billion yen ($4.86 billion) in additional subsidies by the Japanese government to help it build a second chip fabrication plant after the Taiwanese firm marked the opening of its first Japanese factory on Saturday.

In the face of growing tensions with China, TSMC’s move to build chips in Japan has emerged as an important component of Tokyo’s drive to revive advanced semiconductor manufacturing in the country and harden its industrial supply chains against disruptions.

As a result, we will have a stable supply of semiconductors in Japan, as our chips will be of a much higher quality than those produced by the first factory and will be able to be used in artificial intelligence and autonomous driving,” Minister of Economy, Trade and Industry Ken Saito told reporters after attending a ceremony to mark the opening of TSMC’s first factory in Kumamoto, on the island of Kyushu, attended by Morris Chang’s founder.

As a result of this recent financial commitment, there is a possibility that taxpayer-funded subsidies for the world’s biggest chipmaker TSMC could exceed 1 trillion yen for its first factory.

There are plans for TSMC to ramp up the production in its Japanese facility by the end of the year, as well as its expansions in the U.S. and Germany. There will be a total investment of over $20 billion, including a second plant, in the venture, according to the Taiwanese company involved in the venture.

There will be more than 100,000 12-inch wafers produced each month, when the two factories are complete, which TSMC will supply to technology firms and automakers such as Sony (6758.T) and Toyota Motor (7203.T).

Also, Japan has invested in a homegrown chip venture, Rapidus, which has partnered with IBM and Imec, a European chip research organisation, as part of a bid to mass-produce cutting-edge chips on the northern island of Hokkaido starting in 2027 when it becomes a reality.

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