Japan has further solidified its commitment to domestic chip production by announcing an additional ¥732 billion ($4.86 billion) in subsidies for Taiwan Semiconductor Manufacturing Company (TSMC), according to Economy Minister Ken Saito.
This significant investment comes on the heels of the official opening of TSMC’s first Japanese factory in Kumamoto. Saito emphasized the crucial role TSMC plays in Japan’s digital transformation and highlighted the Kumamoto facility’s importance in securing a stable supply of cutting-edge chips for future industrial applications.
The additional funding will be directed towards the construction of a second fabrication building adjacent to the existing facility. This expansion, known as TSMC Fab-23 Phase 2, aims to produce even smaller, 6-nanometer chips and is slated for mass production by 2027.
This move reflects Japan’s broader strategy of incentivizing major chipmakers like TSMC, Samsung Electronics, and Micron Technology to establish operations within the country. By offering substantial financial support, Japan aims to secure a reliable domestic source of chips, critical components for various industries including automobiles and consumer electronics.
