Japan plans to make $10bn of additional funds available in subsidies for Taiwan Semiconductor Manufacturing Company’s (TSMC) factory in Kumamoto and domestic chip venture Rapidus Corp, the secretary general of the Liberal Democratic Party, Yoshihiro Seki, said.
TSMC would receive $6bn and Rapidus Corp $4bn.
TSMC’s second Japanese factory is expected to cost $13bn and will produce 2-12 nanometer logic chips.
TSMC recorded, in July this year, a revenue fall of 10% compared to numbers last year. Overall, the company’s second-quarter earnings have seen a 23% decline.
TSMC is the world’s largest chipmaker and ranked eighth overall on GlobalData’s 2023 Q1 thematic scorecard for semiconductor manufacturers.
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Japan is already providing Y476bn ($3bn) in subsidies for TSMC’s Kumamoto factory and Y330bn for Rapidus in Hokkaido.
Japan’s government has also promised to donate $20m towards promoting science and engineering within its universities. The government also plans to introduce schemes to help students from middle-income households enter higher education.
Japan and the EU will be working together to trade research and engineers, as well as monitor overall chip supplies, said Thierry Breton, European Commissioner for Internal Market.