TSMC Japan Production Expanded by $4.9 Billion From Tokyo

(CTN News) – In order to help TSMC build a second chip fabrication facility in Japan, the government of Japan announced it would give the Taiwanese company 732 billion yen ($4,86 billion) more in subsidies as the company opened its first Japanese factory on Saturday.

This decision by TSMC to build chips in Japan has been hailed as one of the key components of Tokyo’s push to revive advanced semiconductor manufacturing and to harden its industrial supply chain against disruptions in the event of escalating tensions with its neighbour, China.

“The chips will be more advanced than those in the first factory and will allow us to use them for artificial intelligence and autonomous driving, as well as ensure a stable supply of semiconductors in Japan,” the Minister of Economy,

Trade and Industry Ken Saito told reporters after attending a ceremony for the opening of TSMC’s first factory on the Japanese island of Kyushu hosted by Morris Chang, founder of TSMC.

TSMC’s latest financial commitment may push taxpayer-funded subsidies for the world’s largest chipmaker to an amount exceeding 1 trillion yen for the first time, which would add to the money already provided to it for its first factory.

In addition to expanding its operations in the United States and Germany, TSMC plans to ramp up to mass production in Japan before the end of the year as well.

Accord to the Taiwanese company, the total investment in the joint venture, which includes the construction of a second plant, will exceed $20 billion in the next few years.

By the time the two factories are fully operational, TSMC will be able to produce over 100,000 12-inch wafers per month for both technology companies and automobile manufacturers, such as Sony and Toyota Motor.

In addition to investing in Japanese chip ventures, the country is also partnering with IBM and Imec, a European chip research organization, to develop and mass produce cutting-edge chips on the northern island of Hokkaido from 2027, with the aim of making them available throughout the world.

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