The government plans to require computer chip companies to commit to at least 10 years of continuous production as one of the conditions for receiving a state subsidy to build new semiconductor plants in Japan.
The government will provide a massive 400 billion yen subsidy to leading chip manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC) to build a plant in Kumamoto Prefecture. It aims for stable chip procurement for economic security.
The government has stepped up support for the construction of semiconductor plants in Japan, and a related law was passed in December. The condition of a minimum of a decade of production will be included as a criterion to receive a subsidy in the Economy, Trade and Industry Ministry ordinances to accompany the enforcement of the related law. The condition is expected to ensure continued employment in the region.
