Japanese Government Approves TSMC Kumamoto Semiconductor Plant with '4.5 Trillion Won Support'

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Hyung-min] The Japanese government has approved the semiconductor factory plan being constructed in Kumamoto Prefecture by Taiwan's TSMC, the world's largest semiconductor foundry, in collaboration with Japanese companies Sony and Denso, according to reports by Nihon Keizai Shimbun and Asahi Shimbun on the 18th.

The Ministry of Economy, Trade and Industry of Japan made this decision the day before and decided to provide up to 476 billion yen (approximately 4.5 trillion won) in support for the TSMC Kumamoto factory. Of the approximately 1.1 trillion yen (about 10.5 trillion won) invested in the factory construction, the Japanese government will support nearly half.

The TSMC Kumamoto factory began construction in April and aims to start shipments by December 2024. The 10 to 20 nanometer semiconductors produced at this factory will be used in fields such as automobiles, industrial machinery, and home appliances. The Japanese government has been leading efforts to attract the TSMC factory to increase domestic semiconductor production from an economic security perspective.

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