TAIPEI (Taiwan News) — Japan will spend 732 billion yen (NT$153.78 billion, US$4.86 billion) in subsidies for a second plant in Kumamoto by Taiwan Semiconductor Manufacturing Co. (TSMC), the Japan government said Saturday (Feb. 24) after the opening of the first fab.
During the launch ceremony, Prime Minister Kishida Fumio said in a prerecorded message that he supported plans for a second chip factory on the southern island of Kyushu. Afterward, Economy, Trade, and Industry Minister Saito Ken came up with more details, saying that the Cabinet had already planned the level of subsidies for the project.
The minister said he was unable to specify the location of the second factory, but CNA reported it would be a 20-minute drive from the first plant. Saito said one condition for the subsidies would be a high proportion of local sourcing for the factory.
The first plant was a joint venture between TSMC, Sony Semiconductor Solutions, and Denso Corporation under the name of Japan Advanced Semiconductor Manufacturing (JASM). Toyota is expected to join the second project.
In his address at Saturday’s event, TSMC founder Morris Chang (張忠謀) said the production of semiconductors at the plant, expected to start during the final quarter of 2024, would launch a revival of Japan’s chip sector.