Japan pledges an additional $4.86 billion to TSMC for a second chip plant, surpassing 1 trillion yen in subsidies. TSMC plans mass production in Japan by year-end, part of a $20+ billion global expansion. Concurrently, Japan invests in Rapidus for advanced chip production in Hokkaido by 2027 (Subsidies for TSMC’s Second Chip Plant).
Japan has announced its commitment to provide TSMC with an additional 732 billion yen ($4.86 billion) in subsidies to support the construction of a second chip fabrication plant.
This move aligns with TSMC’s inauguration of its first Japanese factory, which signifies a crucial step in Japan’s strategy to revitalize advanced semiconductor manufacturing and fortify its industrial supply chains amidst escalating tensions with China.
Minister of Economy, Trade and Industry Ken Saito emphasized that the upcoming chips from the second plant will be more advanced, catering to applications such as AI and autonomous driving, ensuring a stable semiconductor supply in Japan (Subsidies for TSMC’s Second Chip Plant).
The latest financial commitment, which will add to money given to the world’s biggest chipmaker for its first factory, could push taxpayer-funded subsidies for TSMC beyond 1 trillion yen.
TSMC, which is also expanding in the U.S. and Germany, plans to ramp up mass production in Japan before the end of the year. Total investment in the venture, including a second plant, will exceed more than $20 billion, according to the Taiwanese company (Subsidies for TSMC’s Second Chip Plant).
When completed, monthly capacity across the two factories will exceed 100,000 12-inch wafers that TSMC will supply to technology firms and carmakers including Sony and Toyota Motor (Subsidies for TSMC’s Second Chip Plant).
Japan is making strategic investments in Rapidus, a domestic chip venture, which has collaborated with IBM and Imec, a European chip research organization. This partnership aims to achieve mass production of state-of-the-art chips on the northern island of Hokkaido starting in 2027.
