Japan has unveiled plans to invest an additional $10 billion in grants for two crucial semiconductor initiatives, as stated by a prominent lawmaker from the ruling party specializing in chip technology.
Yoshihiro Seki, the Secretary-General of the semiconductor coalition within the Liberal Democratic Party, mentioned that out of this sum, around 900 billion yen is intended for a second facility of Taiwan Semiconductor Manufacturing (TSMC) in Kumamoto, located in the southwestern region of Japan.
Meanwhile, 590 billion yen is proposed to support Rapidus, a domestic chip enterprise in Japan.
Seki disclosed that these subsidy allocations have been incorporated into the request for an additional budget for the ongoing fiscal year by the Ministry of Economy, Trade, and Industry. He shared this information on Wednesday, October 25.
Local media outlets had initially reported these financial figures earlier in the month. Similar to other budgetary matters in Japan, it is important to note that these numbers are subject to change following deliberations with the finance ministry.
The estimated cost for establishing the second TSMC factory stands at around 2 trillion yen. This facility aims to manufacture logic chips ranging from 6 to 12 nanometres, which are anticipated to be utilized in products such as electric vehicles, according to Seki.
To validate the request for unusually high subsidies for the TSMC plant, the Japanese government intends to negotiate additional advantages for Japan in return for its support.
Seki suggests that these benefits could potentially include TSMC providing training for Japanese engineers and engaging in collaborative research efforts with Japanese corporations.
