Japan is to designate an extra $13.3bn (¥2trn) to bolster its domestic semiconductor manufacturing, government officials told Bloomberg.

Some $5bn of the budget will support chip production, which could include a second Taiwan Semiconductor Manufacturing Co. (TSMC) facility in Kumamoto. The factory is expected to cost $13bn and will produce 2-12 nanometer logic chips.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Related Company Profiles

View all

The company is also developing a $8.6bn factory on the Japanese island of Kyushu which is anticipated to begin selling chips in 2024.

Around $4.2bn is allocated for research and development, according to Bloomberg’s sources. These funds could be accessed by Japan’s domestic chip startup Rapidus.

The budget will be finalised on Friday (10 Nov) if the cabinet approves the investment.

Last month, the secretary general of the Liberal Democratic Party, Yoshihiro Seki, said Japan announced plans to make $10bn of additional funds in subsidies available for a TSMC factory in Kumamoto and the domestic chip venture Rapidus.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Back in July, Thierry Breton, European Commissioner for Internal Market, said the European Union (EU) has announced it will strengthen its cooperation with Japan on the production of semiconductors as countries move to decrease their dependence on China.

Dutch chipmaker ASML told the news outlet Nikkei that the company plans to open a new plant in Japanese island Hokkaido. The spokesperson stated that ASML would be opening its plant to provide support to Japanese chip maker Rapidus.

The US, too, has been attempting to ensure the production of semiconductors domestically, while imposing sanctions on the export of semiconductor materials to China.