The Japanese government will provide an additional 732 billion yen ($4.86 billion) in subsidies. Taiwan Semiconductor Manufacturing Company to expand its plant in the country, Economy Minister Ken Saito said on Saturday.
“TSMC is Japan’s most important partner in realizing digital transformation, and its Kumamoto plant makes an important contribution to our stable procurement of advanced logic chips, which are critical to the future of industries in Japan,” he said at the opening. TSMC plant opening ceremony in Kumamoto.
The chipmaker, Taiwan’s largest company, plans to begin supplying camera and automotive CMOS sensor logic chips from its Kumamoto plant on Kyushu island by the end of this year through collaborations with well-known local companies, including Sony Group Corporation. And Toyota Motor Corp. The government has already allocated 476 billion yen for the plant.
The new aid will go towards the construction of a new production building next to the existing one, the first in Japan. The project, known as TSMC Fab-23 Phase 2, announced by TSMC earlier this month, will produce chips as thin as 6 nanometers, with mass production planned for 2027.
Japan paid trillions of yen for companies like TSMC, Samsung Electronics Company. And Micron Technology Inc.. move some operations into the country to ensure supplies of chips used in everything from car manufacturing to mobile phones.
“Governments around the world are competing fiercely, throwing in large sums of money to ensure domestic supply of chips, and Japan investing this amount of money is necessary for us to promote further industrial development and economic security,” the minister said. “We have learned from the mistakes of the past, and I am confident that we have stunned the rest of the world with the speed with which we implemented this idea.”