Japan Allocates $4.9 Billion in Subsidies for Construction of TSMC Chip Plant

This comes as the Taiwan-based chipmaker opened its first plant in Japan on Feb. 24.

A factory of Taiwanese semiconductors manufacturer TSMC at Central Taiwan Science Park in Taichung, Taiwan, on March 25, 2021. Sam Yeh/AFP via Getty Images

The Japanese government has pledged to provide 730 billion yen (around $4.85 billion) in extra subsidies for the construction of chipmaker Taiwan Semiconductor Manufacturing Co.’s (TSMC) second plant in Japan.

The subsidies were announced following the opening ceremony of TSMC’s first plant in Japan’s Kumamoto Prefecture on Feb. 24, which was attended by Japanese Minister of Economy, Trade and Industry Ken Saito.