TOKYO -- Japan's Ministry of Economy, Trade and Industry (METI) will offer subsidies worth up to 476 billion yen ($3.5 billion) for a semiconductor plant being built in Kumamoto Prefecture by Taiwan Semiconductor Manufacturing Co. (TSMC), Sony Group and Denso, the ministry said on Friday.
This will be the first project to win subsidies from a 617 billion yen public fund created to strengthen Japan's semiconductor industry. Total investment in the plant will come to about $8.6 billion, with Japan's government supporting about 40% of the costs.
The plan for the plant, approved by the ministry on the same day, had been submitted by TSMC and Kumamoto-based JASM, a TSMC subsidiary in which the Sony Group and Denso also have stakes.
Construction began in April, with the consortium planning to begin shipments in December 2024. The plant is to produce 55,000 semiconductors (300-mm wafer equivalent) with circuit line widths in the range of 10 nanometers to 20 nanometers per month.
The government established the fund to support the development of domestic semiconductor factories. The specific amount to be paid out will be determined after careful examination of the partners' application. The payments will begin by the end of the year at the earliest.
Said METI Minister Koichi Hagiuda, "We want to work with Kumamoto Prefecture and others to ensure that the manufacturing facility takes root in the region and develops sustainably."