The Ministry of Economy, Trade and Industry (METI) officially announced that SUMCO, a major semiconductor materials company, will subsidize up to 750 billion yen for a new silicon wafer plant in Saga Prefecture.
https://ssl4.eir-parts.net/doc/3436/ir_material3/211030/00.pdf
🟦Up to 750 billion yen subsidy for the construction of SUMCO’s new plant
The Ministry of Economy, Trade and Industry (METI) announced that it will subsidize up to 750 billion yen for the construction of a new plant at SUMCO, a major semiconductor materials company. SUMCO has built a silicon wafer manufacturing and processing plant in Saga Prefecture and plans to supply it from 2029.
SUMCO is the second largest company in the global market share in silicon wafer manufacturing. Together with Shin-Etsu Chemical, another Japan company, it accounts for 2% of the global share of silicon wafers.
🟦 Addressing the risk of supply chain disruption
The purpose of the subsidy is to strengthen the supply network of semiconductors, which are important for economic security, and to establish a stable supply system in Japan and overseas. It is expected to respond to the risk of supply chain disruption due to the US-China confrontation and other factors, and to support domestic semiconductor-related industries.
By constructing a new manufacturing base in Saga Prefecture, the company aims to meet the increasing demand for semiconductors and achieve a stable supply of semiconductors both domestically and internationally in Japan. The Ministry of Economy, Trade and Industry has also decided to subsidize other semiconductor-related companies such as Ibiden and Canon, in an effort to strengthen the industry as a whole.
🟦Summary
In order to respond to the risk of supply chain disruption due to the US-China confrontation, the Ministry of Economy, Trade and Industry officially announced that SUMCO, a major semiconductor materials company, will subsidize up to 750 billion yen for a new silicon wafer factory in Saga Prefecture.
It seems that government subsidies will also be included in the originally planned expansion of SUMCO’s manufacturing capacity. Rather than expanding by taking advantage of subsidies, we may be able to manage healthily.
