Taiwan's TSMC Accelerates... 10 Trillion Investment in Japan's Second Semiconductor Plant

Taiwanese semiconductor company TSMC is pouring 1 trillion yen (approximately 9.69 trillion won) into building its second semiconductor factory in Kumamoto Prefecture, Japan.

[Image source=Reuters Yonhap News]

On the 24th, Bloomberg News reported this citing the Japanese Nikkan Kogyo (Daily Industrial) newspaper.

The factory is scheduled to be completed by the late 2020s and is expected to apply cutting-edge manufacturing processes of 5 nanometers (nm; 1 nm is one billionth of a meter) or 10 nm. TSMC's first factory in Kumamoto, the first to be built in Japan, is scheduled to start operations by the end of next year.

TSMC is expected to negotiate subsidies with the Japanese government and investment terms with its customers. Specific details are expected to be finalized by the end of the year.

As efforts to restructure the semiconductor supply chain, known as the "rice of industry," centered on the United States are gaining momentum, countries around the world are sending love calls to attract TSMC factories. The United States supports a total of $52.7 billion (approximately 68.8 trillion won) for semiconductor factory construction and research and development (R&D) domestically based on the Semiconductor Support Act. Japan is also expected to provide similar subsidies.

The Japanese government is reported to have provided TSMC with subsidies amounting to 476 billion yen (approximately 4.6 trillion won), which is half of the cost of building the factory in Japan.

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