Japan to provide 40% subsidy to TSMC, Sony venture
The Japanese government will pay up to 476 billion yen (about US$3.5 billion) towards an $8.6-billion wafer fab being built by TSMC, Sony and Denso, according to local reports.
The reports reference Japan’s Economic Minister Koichi Hagiuda speaking at a press conference Friday.
The level of support is 40 percent off the estimated cost. This is the same level of subsidy provided by the German government to attract Intel to build two wafer fabs in Masdeburg (see Intel to get 40% subsidy for German wafer fabs).
In the Japanese case the government has backed a joint venture called Japan Advanced Semiconductor Manufacturing Inc., a joint venture of TSMC, Sony Semiconductor Solutions Corp and Denso Corp, to set up the factory in Kumamoto Prefecture (see Denso joins TSMC’s Japanese wafer fab club).
Construction of the wafer fab, with an anticipated manufacturing capacity of 55,000 wafer starts per month, began in April. The plant in Kikuyo is expected to begin operations in December 2024.
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