TSMC, Kioxia and Micron Technology are expected to receive subsidies from the Japanese government to support them in building new fabs or expansion projects in Japan.
On November 9 this year, TSMC announced that it will build a wafer fab with Sony in Japan. The plant plans to start construction in 2022 and put it into production at the end of 2024. The initial investment is estimated to be US$7 billion. However, this money does not require TSMC to invest entirely on its own, and the Japanese government will give huge subsidies.
In addition to TSMC, Kioxia and Micron Technology also plan to build chip factories in Japan. In October last year, Kioxia announced that it will build a new 3D flash BiCS FLASH production plant in the northern part of its factory in Yokkaichi, Mie Prefecture, Japan. The plant will be constructed in two phases. It is expected to start construction in the spring of 2021 and complete the first phase in the spring of 2022.
In October this year, foreign media reported that Micron Technology also plans to invest 800 billion yen (approximately US$6.99 billion) to build a new factory in Hiroshima, Japan. The factory may specialize in the production of DRAM memory chips and is expected to start operations in 2024. At that time, the report also said that the Japanese government may provide financial assistance to this project of Micron Technology.
Last week, foreign media reported that Japan will allocate 600 billion yen (approximately US$5.2 billion) from the 2021 fiscal year's supplementary budget to support chip manufacturers to build factories in Japan. Among them, TSMC will exclusively receive 400 billion yen in subsidies.
In addition, according to sources, Kioxia and Micron Technology will also receive subsidies from the Japanese government for their chip factories in Japan.
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