Chips

Taiwan's TSMC considering second chip plant in Japan, say lawmakers

The group, which has about 100 Liberal Democratic Party lawmakers as its members, has been a force behind Japan's recent moves to secure microchip supplies and strengthen its semiconductor industry

23 December 2022 - 11:00 By Reuters
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Taiwan Semiconductor Manufacturing (TSMC) is planning to set up a second chip factory as semiconductor issues continue to plague the auto industry.
Taiwan Semiconductor Manufacturing (TSMC) is planning to set up a second chip factory as semiconductor issues continue to plague the auto industry.
Image: SUPPLIED

The secretary-general of a Japanese ruling party lawmakers' group on chip strategy said on Friday he believed Taiwan's TSMC is considering a second chip plant in Japan, and Japan needs to create a conducive environment for such a decision.

Taiwan Semiconductor Manufacturing (TSMC) is building a major chip plant in Japan, with Sony Group and auto parts maker Denso each taking a minority stake in the $8.6bn (about R146bn) project.

The Japanese government, which has sought to boost domestic microchip production, plans to offer the project up to 476-billion yen (about R61bn) in subsidy.

"I believe TSMC is looking into further investments in Japan. We need to create an environment that would make them think they want to do advanced projects with us," Yoshihiro Seki, secretary-general of the lawmakers' group, told Reuters in an interview.

The group, which has about 100 Liberal Democratic Party lawmakers as its members, has been a force behind Japan's recent moves to secure microchip supplies and strengthen its semiconductor industry, including the construction of the TSMC plant in western Japan.


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