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Taiwan’s TSMC to receive up to US$3.5bn in subsidies for Japan plant

Construction on Kumamoto plant began in April, production slated to start in December 2024

TSMC Tainan office building. (Reuters photo)

TSMC Tainan office building. (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) will receive up to US$3.5 billion (NT$104 billion) in subsidies from Japan’s Ministry of Economy, Trade and Industry (METI) for its upcoming fab in Kumamoto Prefecture, the ministry said on June 17.

The TSMC project will be the first to obtain subsidies from a US$4.57 billion public fund created to bolster Japan’s domestic chip industry, Nikkei reported. The plan for the plant was submitted by Japan Advanced Semiconductor Manufacturing Inc., a joint-venture between TSMC, Sony Semiconductor Solutions Corporation, and Denso and approved by METI on the same day.

The Kumamoto project is expected to cost around US$8.6 billion in total. Construction on the plant began in April in the industrial sector in the town of Kikuyo and is expected to begin commercial production in December 2024.

The fab will have two production lines, one that produces 12 and 16 nanometer chips, and one that manufactures 22 and 28 nanometer silicon. The plant will have a monthly capacity of 55,000 12-inch wafers.

The Kumamoto facility is expected to produce semiconductors used in image sensors and microcontrollers. TSMC has previously said the plant will create around 1,700 jobs.