Japan To Provide Substantial Subsidy For TSMC's Second Chip Plant

The Japanese government plans to offer a significant subsidy of 730 billion yen ($4.9 billion) for Taiwan Semiconductor Manufacturing Co.'s (TSMC) second chip plant in Kumamoto Prefecture, as reported by Kyodo News.

TSMC, the world's largest contract chipmaker, is set to commence operations at its first chip plant in the prefecture later this year with the support of a 476 billion yen subsidy. I Photo: Kyodo News

TSMC, the world's largest contract chipmaker, is set to commence operations at its first chip plant in the prefecture later this year with the support of a 476 billion yen subsidy. The additional subsidy aims to bolster Japan's chip supply chain, with plans for TSMC to invest approximately 2 trillion yen in constructing both factories.

The government's initiative to strengthen chip production domestically comes amidst concerns over geopolitical risks and dependencies on major suppliers like Taiwan.

Japan's efforts to enhance semiconductor production, including subsidies for chipmakers like TSMC, underscore its commitment to economic security and reducing reliance on external sources amid global tensions.

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