To strengthen the semiconductor layout, Japan will provide 75 billion yen to the fab Sumco to increase production capacity.
CTOnews.com, July 11, in order to revive the semiconductor industry, the Japanese government announced that it will provide subsidies of up to 75 billion yen (CTOnews.com Note: about 3.81 billion yuan) to Sumco Corp, a major producer of silicon wafers, to achieve higher production capacity.
According to the Nikkei News, Sumco plans to invest 225 billion yen (currently about 11.43 billion yuan) in plant and equipment, of which 1/3 of the cost is subsidized by Japan's Ministry of economy, Trade and Industry (METI).
CTOnews.com Note: Sumco was jointly established in 1999 by the former Sumitomo Metal Corporation (a predecessor of Nippon Steel, once a Japanese steel monopoly) and Mitsubishi Comprehensive Materials, completely absorbing the semiconductor business of the two companies.
The company ranks second in the world in terms of basic materials and substrates for semiconductor circuits, second only to Japan's Shinyue Chemical. It is worth mentioning that the merger of Shinyue and Sumco can reach more than half of the global market.
Sumco's main production facility is located in Saga Prefecture, at the southernmost tip of Kyushu, and plans to build advanced chip plants in nearby towns, which are expected to start wafer production in 2029.
Tu Yuan Pexels Japan has been subsidising chipmakers and suppliers, including TSMC, to revive the domestic industry as countries expand control over supply chains that are vital to key industries.
Japan has provided 2 trillion yen (currently about 101.6 billion yuan) in financial support for semiconductors over two years, such as 476 billion yen (currently about 24.181 billion yuan) in subsidies announced last year for TSMC plants in Kumamoto prefecture. In addition, the Japanese government also plans to provide up to 40.5 billion yen for the Ibiden chip packaging plant and up to 11.1 billion yen for the Canon manufacturing equipment plant.
In June, Japan Investment Corporation (Japan Investment Corporation) announced that it would launch a bid for photoresist maker JSR, hoping that the government would restructure the industry.
