For almost two years, a global shortage has hit the electronic components industry.

In an attempt to provide an answer, the Japanese government has decided to invest 774 billion yen, or about 6 billion euros, in order to support semiconductor manufacturers.

Perhaps the most notable manufacturer to benefit from this aid is Taiwan Semiconductor Manufacturing Co (TSMC), the largest independent semiconductor foundry headquartered in Taiwan.

Funds will also be made available for semiconductor research.

Since the 1980s, Japan has remained the largest chipmaking industry in the world.

The country has since continued to wage an uphill battle to maintain its competitive advantage in an increasingly crowded industry.

This global shortage has therefore hit Japan particularly hard.

A partnership between TSMC and Sony

As part of the stimulus package, the Japanese government will invest around 400 billion yen in a new plant to be installed by the semiconductor company TSMC in Kumamoto Prefecture, southwestern Japan.

For its part, TSMC has also announced that it will invest alongside Sony Group Corp, nearly $ 7 billion for this plant, a decision welcomed by the Japanese government.

Work on the construction of the chip factory will begin in 2022 with an opening scheduled for 2024. 1,500 people are expected to be employed full time in the factory.

TSMC's board of directors also confirmed plans to build another new factory in Kaohsiung, a large port city in southern Taiwan.

Its opening is also scheduled for 2024.

The remainder of the Japanese government budget will be spent on preparing other factories for new projects.

Among these, we find in particular the American manufacturer of memory chips Micron Technology Inc and the Japanese Kioxia Holdings.

Despite this good news for the industry, TSMC CEO CC Wei said the company will continue to experience production challenges throughout 2022, so patience will still need to be taken in the face of this shortage.

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  • Technology

  • Investment

  • High-Tech

  • Japan

  • Shortage

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