Japan will subsidize TSMC's Kumamoto plant by $3.5 billion

Japan's Ministry of Economy, Trade and Industry said today (17) that it will provide subsidies of up to 476 billion yen (about 3.5 billion U.S. dollars) for the semiconductor factories built by TSMC, Sony Group and Denso in Kumamoto, Japan.

According to the Nikkei Asian Review, the total investment of TSMC's Kumamoto plant in Japan will reach about 8.6 billion US dollars, with the Japanese government supporting about 40% of the cost. It will be the first project to receive subsidies from a 617 billion yen public fund aimed at strengthening Japan's semiconductor industry.

It is reported that TSMC's Kumamoto plant in Japan plans to start construction in 2022 and start production at the end of 2024. In order to meet market demand, in addition to the previously announced adoption of 22/28nm process and increasing monthly production capacity to 55,000 12-inch wafers, TSMC will also enhance the fab's production capacity with 12/16nm FinFET process technology.

In addition, the plant is expected to directly create around 1,700 high-tech professional jobs.