The Ministry of Economy, Trade and Industry announced that it will subsidize up to 732 billion yen for the maintenance cost of TSMC Kumamoto No. 2 Plant
🟦TSMC Kumamoto No. 2 Plant Subsidy Decision! 732 billion yen in support to strengthen domestic production system for advanced semiconductors
The Ministry of Economy, Trade and Industry (METI) has announced that it will subsidize up to 732 billion yen for the maintenance cost of TSMC’s Kumamoto No. 2 factory. TSMC, together with the Kumamoto No. 1 plant, will have a total investment of more than 20 billion dollars (about 3 trillion yen).
Construction of the second plant is expected to begin by the end of 2024 and be operational by the end of 2027. It mainly manufactures advanced semiconductors in the 6nm process, and will be a domestic mass production base for advanced semiconductors used in autonomous driving and AI.
🟦 Strengthening economic security through a stable supply of semiconductors in Japan
Semiconductors are indispensable components in a wide range of products, including automobiles, home appliances, and communication equipment, and their importance has been increasing in recent years. However, semiconductor manufacturing requires advanced technology and equipment, so production bases are concentrated in Taiwan.
The risk of disruption of the semiconductor supply chain has become apparent due to a series of natural disasters and changes in the international situation in recent years, such as the spread of the new coronavirus infection in 2020 and the large-scale power outage in Taiwan in 2021. In light of this situation, the government has decided that it is necessary to secure a stable supply of advanced semiconductors in Japan and enhance Japan’s industrial competitiveness from the perspective of economic security.
🟦Summary
The Ministry of Economy, Trade and Industry (METI) has announced that it will subsidize up to 732 billion yen for the maintenance cost of TSMC’s Kumamoto No. 2 plant. Securing a stable supply of advanced semiconductors in Japan and enhancing Japan’s industrial competitiveness
U.S. President Joe Biden attended the opening ceremony of TSMC’s new factory in Arizona on December 6, 2023. Meanwhile, Prime Minister Fumio Kishida did not attend the TSMC Kumamoto site and sent a video message. Japan seems to be focusing on implementing specific policies rather than strengthening the competitiveness of the semiconductor industry through appeal.
