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TSMC's decision to build chips in Japan has become a key
component of Tokyo's push to revive advanced semiconductor
manufacturing and harden its industrial supply chains against
disruptions as tensions with neighbouring China grow.
"The chips will be more advanced than the first factory and can
be used for AI and autonomous driving, and will ensure we have
stable supply of semiconductors in Japan," Minister of Economy,
Trade and Industry Ken Saito told reporters after attending a
ceremony for the opening of the first factory in Kumamoto on
Japan's Kyushu island, hosted by TSMC's founder Morris Chang.
The latest financial commitment, which will add to money given
to the world's biggest chipmaker for its first factory, could
push taxpayer-funded subsidies for TSMC beyond 1 trillion yen.
TSMC, which is also expanding in the U.S. and Germany, plans to
ramp up to mass production in Japan before the end of the year.
Total investment in the venture, including a second plant, will
exceed more than $20 billion, according to the Taiwanese
company.
When completed, monthly capacity across the two factories will
exceed 100,000 12-inch wafers that TSMC will supply to
technology firms and carmakers including Sony and Toyota Motor.
Japan is also investing in a homegrown chip venture, Rapidus,
which is partnering with IBM <IBM.N> and Imec, a European chip
research organisation, in a bid to mass produce cutting-edge
chips on the northern island of Hokkaido from 2027.
($1 = 150.5000 yen)
(Reporting by Tim Kelly; Editing by Sonali Paul)
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