Japan Government Conceives $337M Chip Development Pact with TSMC, 20 Japanese Companies

Taiwan Semiconductor Manufacturing Co Ltd TSM, along with twenty Japanese companies, have collaborated for a Japanese government-initiated chip manufacturing technology development program, Nikkei reports.
The Japanese companies include packing technology company Ibiden, materials maker Asahi Kasei, heat-dissipating material manufacturer Shin-Etsu Chemical, material molder Nagase & Co, and manufacturing equipment producer Shibaura Mechatronics.
TSM plans to incur 50% of the project cost of 37 billion yen ($337 million). The Japanese government will pay the other half.
The trial facility construction will begin this summer at the National Institute of Advanced Industrial Science and Technology in Tsukuba, Ibaraki Prefecture.
The research and development work will begin in 2022.
TSM plans to introduce the so-called 3D packaging technology in Japan.
Earlier this year, TSM planned to spend $178 million for a material research subsidiary near Tokyo, Reuters reports.
There is a high chance of a Japanese TSM facility motive behind the government's cooperation.
Price action: TSM shares traded higher by 0.95% at $118.45 in the premarket session on the last check Tuesday.