According to Nikkei Asia, the Japanese government will allocate about 600 billion yen (approximately $5.2 billion) in 2021 to support semiconductor manufacturers to expand production in Japan, two-thirds of which will invest in TSMC’s chip fab in Japan.
The report pointed out that of the 600 billion yen, 400 billion yen (approximately $3.47 billion ) will be used to invest in TSMC’s manufacturing plant in Kumamoto Prefecture, Kyushu, and the remaining 200 billion yen will be used to fund other semiconductor investment projects, including Micron Technology and Kioxia Holdings.
Nikkei Asia also pointed out that because TSMC has the world's most advanced chip manufacturing technology, the Japanese government has been trying to attract TSMC to build factories in recent years. In addition, the 600 billion yen fund covers several years of subsidies, not one year.
TSMC has announced earlier this month that it will invest 7 billion US dollars to jointly establish a chip factory in Japan with Sony. It plans to start construction in 2022 and start mass production in 2024. The fab will mainly produce chips using 22nm to 28nm technology, which are widely used in the automotive and consumer electronics fields.