The Strategist

Japan to invest in building semiconductor plants in the country

11/24/2021 - 08:24

The Japanese government intends to allocate about 600 billion yen (about $5.2 billion) as part of the supplementary budget package for the current fiscal year 2021 to support the construction of semiconductor manufacturing plants in the country.

Specifically, 400 billion ($3.5 billion) will go to subsidize the construction of a plant by Taiwan Semiconductor Manufacturing (TSMC). The remaining funds will go to support projects of other companies, including Micron Technology and Kioxia Holdings.

Earlier in October, Japanese Prime Minister Fumio Kishida said the government would support and financially assist semiconductor manufacturers in the construction of plants on Japanese soil.

Construction of TSMC's plant in Japan is expected to begin as early as 2022, with production expected to start at the plant in 2024. The plant will be jointly operated by TSMC and Japan's Sony. The factory is expected to be located in Kumamoto Prefecture. TSMC itself intends to invest about 1 trillion yen (about $8.8 billion) in the construction.