The Kumamoto factory of Taiwanese semiconductor manufacturer TSMC has finally been completed, and the Japanese government has decided to provide approximately 730 billion yen in subsidies for the construction of a second factory.
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The factory that TSMC, one of the world's largest semiconductor foundries based in Taiwan, was building in Kumamoto Prefecture, Japan, was finally completed on February 24, 2024, and an opening ceremony was held . Furthermore, the Japanese government has announced that it will provide up to $4.86 billion (approximately 732 billion yen) in subsidies for TSMC's construction of a second factory in Kumamoto.
Japan takes Taiwan's helping hand on long road to chip revival | Reuters
https://www.reuters.com/technology/japan-takes-taiwans-helping-hand-long-road-chip-revival-2024-02-22/
Japan to subsidize US$5 billion for TSMC's Fab2 in Kumamoto
Japan to Give Extra $4.86 Billion to Expand TSMC Kumamoto Plant - Bloomberg
https://www.bloomberg.com/news/articles/2024-02-24/japan-to-give-extra-4-86-billion-to-expand-tsmc-kumamoto-plant
Tokyo pledges a further $4.9 bln to help TSMC expand Japan production | Reuters
https://www.reuters.com/technology/tokyo-pledges-further-49-bln-help-tsmc-expand-japan-production-2024-02-24/
TSMC's plan to construct a semiconductor factory in Kikuyo Town, Kumamoto Prefecture was announced in November 2021. At that time, TSMC received approximately 400 billion yen in subsidies from the Japanese government.
With support of 400 billion yen, the world's largest semiconductor foundry 'TSMC' will build a new factory in Japan, and Samsung will also build a new factory in the United States - GIGAZINE
On February 24, 2024, about two years after the announcement, TSMC's Kumamoto factory was completed and an opening ceremony was held. At the opening ceremony, TSMC founder Morris Chan said, ``I am deeply moved to be able to construct a factory in Japan.The construction of this factory will strengthen the supply of semiconductors not only in Japan but also around the world, and will improve semiconductor manufacturing. We hope this will be a turning point.'
Takeshi Saito , Minister of Economy, Trade and Industry, said, ``Japan once boasted the world's largest share of the semiconductor industry, but its competitiveness has declined as both the public and private sectors have been left behind by the times.''Japan's first TSMC factory The completion and opening ceremony of the facility is extremely significant as it fills a missing piece in Japan's semiconductor industry.'
Furthermore, in February 2024, TSMC announced that it will construct a second factory in Kumamoto Prefecture, with the aim of starting operations by the end of 2027.
Taiwanese chip maker 'TSMC' announced that it will build a second factory in Japan and start operations by the end of 2027, with a total investment of approximately 3 trillion yen and the first factory scheduled to start mass production in the fourth quarter - GIGAZINE
Along with the construction of the second factory, the Japanese government has announced that it will provide additional subsidies of up to 4.86 billion dollars (approximately 732 billion yen) to TSMC. Minister of Economy, Trade and Industry Saito said, ``TSMC is our most important partner in realizing digital transformation .''
TSMC's first Kumamoto factory, which is scheduled to begin full-scale operations for semiconductor mass production by the end of 2024, and the second factory, which has been decided to be built, will produce semiconductors for a wide range of applications, including automobiles and industrial equipment. I will. Through joint ventures with Japanese companies such as the Sony Group and Toyota Motor Corporation, TSMC plans to ship semiconductors produced at its Kumamoto factory that will be incorporated into CMOS image sensors for cameras and logic chips for automobiles.
In addition, the second factory is scheduled to produce semiconductors at the 6-7 nm node, which has been difficult to manufacture in Japan until now, and Minister of Economy, Trade and Industry Saito told reporters, ``The semiconductors produced at the second factory will be manufactured at the 6-7 nm node. It will be more advanced than the semiconductors produced at the single factory, and can be used for AI and autonomous driving, as well as ensuring a stable supply of semiconductors in Japan.'' , will produce semiconductors that are essential for Japan's core industries, including automobiles, and it is no exaggeration to say that it will determine the future competitiveness of Japanese industry as a whole.'
According to the Kyushu Economic Research Association , the economic impact of this area where the TSMC factory was built could reach $134 billion (approximately 20.1 trillion yen) over the 10 years starting in 2024. On the other hand, the lack of labor seems to be a bottleneck in expanding economic effects. 'Large companies like TSMC and Sony have no trouble securing the necessary human resources, but the situation changes for local semiconductor-related companies,' said Soei Kawamura, a researcher in the business development department of the Kyushu Economic Research Association. 'The economic development of Kyushu will change greatly depending on how many human resources Japanese companies can secure.'
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