Media reports quoting Yoshihiro Seki, a member of Japan’s House of Representatives, that Japan plans to add JPY 1.49 trillion (US$ 10 billion) to its budget for subsidizing two important semiconductor investment projects, namely, TSMC and Rapidus.
Japan to invest $6 billion in TSMC 2nd fab to produce 6-12nm chips.
This monumental commitment aims to fortify the country’s domestic semiconductor industry and solidify its status as a pivotal player in the global technology sector.
Japan’s allocation of such substantial funds comes at a critical juncture, with semiconductor shortages raising concerns about the nation’s supply chain resilience.
TSMC’s Second Factory in Kumamoto
The second TSMC factory in Kumamoto emerges as a linchpin of this ambitious investment. TSMC is globally renowned for its semiconductor manufacturing prowess. TSMC’s decision to invest in Japan heralds a substantial boost to the country’s semiconductor industry.
This factory, anticipated to cost approximately 2 trillion yen(~15 B $), is earmarked for the production of 6-12 nm chips. These chips will find applications in an array of products, including electric vehicles.
The significance of this investment goes beyond monetary support; it is a strategic commitment to foster Japan’s semiconductor capabilities and promote collaboration with TSMC. The substantial subsidy allocated to TSMC’s factory underscores the Japanese government’s dedication to ensuring the success of this project.
