Japanese Companies and Government to Fund Domestic TSMC Chip Factory

Taiwan Semiconductor Manufacturing Co is working with a group of more than 20 Japanese companies on chipmaking technology. Japan’s government will fund half the cost of a JPY37 billion ($343 million) production facility near Tokyo, The Nikkei reported.

According to the newspaper, the project is backed by the Ministry of Economy, Trade and Industry, and electronic component maker Ibiden is one of the domestic companies involved. Construction of a test production line will start around September, with full-scale research and development expected to begin in 2022.

Earlier in the year, TSMC announced plans to invest about $178 million in an advanced material R&D centre in the country. Japan’s government has encouraged TSMC to invest in local facilities, as tension with China increase and the US looks to support domestic chip production with federal funding, amid a worldwide chip shortage slowing production across many sectors.