Japan Provides 200 Billion Won to Taiwan's TSMC... Establishes Semiconductor R&D Hub in Tsukuba City

[Photo by AFP Yonhap News]

[Asia Economy Reporter Park Byung-hee] The Japanese Ministry of Economy, Trade and Industry announced on the 31st of last month that it will provide subsidies amounting to approximately 19 billion yen (about 20 billion KRW) to Taiwan's TSMC, the world's largest semiconductor foundry, according to the Yomiuri Shimbun on the 1st.

TSMC is establishing a semiconductor research and development hub in Tsukuba City, Ibaraki Prefecture, Japan. The Japanese government will cover half of the total project cost (37 billion yen) required for this through the subsidy support.

The Japanese government established a joint public-private enterprise this year to organize a domestic production system for advanced semiconductors. It is also promoting semiconductor industry development policies by launching the "Semiconductor and Digital Industry Strategy Review Meeting," a body to devise new industrial policies related to semiconductors and digital infrastructure.

Once a leader in the global semiconductor industry, Japanese companies currently produce semiconductors for PCs but are considered to be significantly behind in the advanced semiconductor production sector, which serves as the brain for various digital devices such as smartphones and automobiles.

Against this backdrop, the Japanese government has been reviewing support measures for TSMC, which decided to establish an advanced semiconductor research and development hub in Japan.

The Japanese government plans to build a domestic mass production system for advanced semiconductors through cooperation between TSMC and Japanese companies. TSMC will create a new research hub within the National Institute of Advanced Industrial Science and Technology located in Tsukuba City. It is expected to begin setting up test lines after this summer and start full-scale research and development as early as next year.

This research and development facility, known to focus on cutting-edge technologies such as the post-processing part that determines semiconductor performance, will involve about 20 Japanese companies, including Hitachi High-Tech, a major semiconductor manufacturing equipment company, and Asahi Kasei, which has competitiveness in semiconductor materials, sharing knowledge and experience.

The Yomiuri Shimbun reported that the Japanese government plans to extend similar invitations to the US company Intel following TSMC.

This content was produced with the assistance of AI translation services.