Taiwan Semiconductor Manufacturing Co. said it expects a new chip-making facility under construction in Japan to cost about $8 billion and the Japanese government will help cover roughly half that amount.
(Bloomberg) — Taiwan Semiconductor Manufacturing Co. said it expects a new chip-making facility under construction in Japan to cost about $8 billion and the Japanese government will help cover roughly half that amount.
The Taiwanese company made the comments after it announced earnings for the first quarter. TSMC is building new facilities in Japan and the US in part to address national security concerns about the primary chip-making facilities concentrated in Taiwan amid rising geopolitical tensions and supply chain shocks.Â
Japan has approved 774 billion yen ($6.8 billion) in funding for domestic semiconductor investment, suggesting TSMC’s effort may represent a significant portion of that total. The package is part of an extra budget for this fiscal year that the Cabinet signed off on and consists of three parts: 617 billion yen to fund domestic investment into cutting-edge chip manufacturing production capacity, 47 billion yen for legacy production, as well as 110 billion yen for the research and development of next-generation silicon.Â
TSMC is teaming up with Sony Group Corp. on the plant in Kumamoto prefecture. Japan’s ruling party and government have both made it a priority to support companies beefing up semiconductor production. Developing technology trends ranging from 5G wireless communication to autonomous driving and the metaverse require massive computing power, and supply-chain snarls over the past year have highlighted the need to fortify domestic chipmaking capacity.
Rad more: TSMC’s Outlook Disappoints as Global Tech Slump Persists
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.