Japanese government to allocate up to ¥476 billion for TSMC chip plant

The central government will allocate up to ¥476 billion ($3.6 billion) for a Taiwan Semiconductor Manufacturing Co. subsidiary to use in funding the ongoing construction of a plant in southwestern Japan, the industry minister has said.

In a bid to secure a stable supply of chips, the government backed the plan by Japan Advanced Semiconductor Manufacturing Inc., a joint venture of TSMC, Sony Semiconductor Solutions Corp. and Denso Corp., to set up the factory in Kumamoto Prefecture, industry minister Koichi Hagiuda said Friday.

Amid global chip shortages, Japan is aiming to improve the nation's economic security by supporting the subsidiary of the world's largest contract chipmaker, with Terushi Shimizu, president and CEO of Sony Semiconductor Solutions, saying he felt "emboldened" by the plan.