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Last Updated on 25th June 2024
The Economy Ministry in Japan is preparing to allocate more than USD 13.3 billion in subsidies to bolster investment in the semiconductor manufacturing industry. Around USD 5 billion will go into supporting mass production of chips. The fund will be used to build a second TSMC factory in Kumamoto Southwestern Japan.
Around 4 billion will be used to support the research of cutting-edge semiconductor chips to train artificial intelligence models. This fund will be used to assist Japan’s homegrown chip venture Rapidus Corporation. Around USD 4 billion will be assigned for a separate fund to enhance the stable supply of semiconductors to Japan.
Japan is aiming to revive its semiconductor industry intending to triple the sales of domestically produced semiconductors to USD 99 billion by 2030. The country has added semiconductors as a key item for economic security as the device plays a vital role in boosting growth via electric vehicles and AI.
The subsidy support provided by the government will boost many upcoming and ongoing semiconductor fabrication plant projects such as:
TSMC, the world's largest semiconductor manufacturer, is building a new fab in Kumamoto, Japan. The fab will produce advanced logic chips and is expected to start production in 2024.
Rapidus, a Japanese-led consortium of semiconductor companies, is building a new fab in Hokkaido, Japan. The fab will produce next-generation 2nm and beyond logic chips and is expected to start production in 2027.
Sony is building a new fab in Kagoshima, Japan to produce image sensor chips. The fab is expected to start production in 2025.
Fujitsu is building a new fab in Aizu-Wakamatsu, Japan to produce logic chips. The fab is expected to start production in 2024.
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