TSMC’s first chip factory in Japan received a subsidy of US$3.5 billion from the Japanese government

It was reported that TSMC’s first chip factory in Japan will receive approximately 400 billion yen (approximately US$3.486 billion) of Japanese government subsidies. According to the report, the Japanese government will allocate approximately 600 billion yen (approximately US$5.2 billion) from its supplementary budget for fiscal 2021 to support advanced semiconductor manufacturers.

Among them, about 400 billion yen will be used to invest in a new factory built by TSMC in Kumamoto Prefecture in southwestern Japan; and the remaining 200 billion yen will be used to build other new factories, including US memory chip manufacturer Micron Technology (Micron Technology). ) And the project of Kioxia Holdings in Japan.

It should be pointed out that this 600 billion yen fund covers several years of subsidies, not one year. Because TSMC has the world's most advanced chip manufacturing technology, the Japanese government has been trying to attract TSMC to build factories in recent years.

It was previously reported that the Japanese government plans to support the project through subsidies worth hundreds of billions of yen, which will become the largest financial support the Japanese government has ever given to foreign-owned holding companies.

TSMC officially announced earlier this month that it will jointly build its first-ever chip factory in Japan with Sony. The plant will be located in Kumamoto Prefecture, Japan, with an initial investment of 7 billion U.S. dollars. Sony will invest up to 500 million U.S. dollars and hold approximately 20% of the shares in the joint project.

The chip factory plans to start mass production at the end of 2024, mainly producing semiconductors for camera image sensors, as well as chips for automobiles and other products.