Japan will expand the subsidy measures for domestic semiconductor production. The projects cover automotive chips, manufacturing equipment and materials. Both domestic and foreign companies can apply. The subsidized companies must guarantee continuous production for 10 years, and they must also give priority to domestic supply in Japan when there is a shortage of supply. goods.

(Reuters)

[Compilation of Lu Yongshan/Comprehensive Report] According to Nikkei News reports, in order to strengthen the resilience of the supply chain, Japan will expand subsidy measures for domestic semiconductor production. The project covers automotive chips, manufacturing equipment and materials, etc., and domestic and foreign companies can apply. Conditions The subsidized enterprises must guarantee continuous production for 10 years, and they must also give priority to supplying goods to Japan when there is a shortage of supply; this shows that Japan's semiconductor incentives are no longer limited to advanced chips.

The "Economic Security Promotion Law" implemented in Japan last year listed 11 items of materials such as semiconductors as "specific important materials". Geopolitical risks that may occur in the future.

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The Japanese government has allocated 368.6 billion yen (about 84 billion Taiwan dollars) from the 1.3 trillion yen additional budget in 2022 to fund these subsidy measures newly planned by the Japanese Ministry of Economy, Trade and Industry.

These subsidies cover 1/3 of the capital investment in automotive chips such as power management chips, microcontrollers (mcu), analog-to-digital converters, 1/3 of the investment in chip manufacturing equipment and semiconductor components, and raw materials such as inert gases up to half of the investment amount.

Both domestic and foreign enterprises can apply for the new subsidy measures. The condition is that the subsidized enterprises must guarantee continuous production for 10 years, and they must also give priority to supplying goods in Japan when there is a shortage of supply.

Japan has allocated 774 billion yen from the 2021 supplementary budget to support domestic semiconductor production.

TSMC, the world's leading wafer foundry, is building its first fab in Kumamoto, Kyushu, and received nearly half of the total construction costs.

The Japanese government also funded Rapidus, which was established in August last year. The company consists of Toyota Motor, Sony, NTT, NEC, Softbank, Denso, NAND flash memory maker Kioxia, Eight Japanese companies including Mitsubishi UFJ Financial Holdings jointly invested 7.3 billion yen in the establishment, and the Japanese government provided 70 billion yen in subsidies. The company plans to build a prototype production line for 2-nanometer chips in 2025 and start mass production in 2027.

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