Japan Eyes Semiconductor Plant Subsidies

Politics

Tokyo, Nov. 8 (Jiji Press)--The Japanese government is considering subsidizing costs to construct semiconductor plants in Japan to help boost chip production amid global shortages, informed sources said Monday.

The government aims to submit legislation aimed at revising a law on the development of 5G large-capacity ultrafast mobile networks to an extraordinary session of parliament expected to be convened by the end of this year at the earliest, according to the sources.

The first recipient of the envisaged subsidies is expected to be Taiwan Semiconductor Manufacturing Co., the world's leading contract chipmaker, which is expected to build a plant in Kumamoto Prefecture, southwestern Japan, the sources said.

TSMC is likely to receive several hundred billion yen.

The government will create a fund at the New Energy and Industrial Technology Development Organization, or NEDO, for the subsidies, planning to earmark necessary costs in a fiscal 2021 draft supplementary budget, according to the sources.

[Copyright The Jiji Press, Ltd.]

Jiji Press