- The Japanese government overhauled its chip strategy to triple sales of domestically produced semiconductors to over 15 trillion yen ($108 billion) by 2030.
- The revised strategy, released Tuesday, aims to boost efforts to develop and produce advanced semiconductors critical for economic security measures and advanced technology like generative AI, Bloomberg cites the economy ministry.
- The government committed financial support worth 330 billion yen for Rapidus and up to 476 billion yen for Taiwan Semiconductor Manufacturing Company Ltd's TSM new factory in Kumamoto in southern Japan. The government also provides up to 92.9 billion yen in subsidies to Kioxia Holdings Corp's plant in Mie in central Japan.
- The revised strategy showed that the government expects the TSMC and Kioxia projects alone to boost Japan's gross domestic product by 4.2 trillion yen, create about 463,000 jobs, and generate roughly 760 billion yen in tax revenue. a
- The target, which appeared in earlier drafts of the revised strategy, compares with sales of about 5 trillion yen in 2020.
- The government has yet to divulge the incentive it proposes to dole out over the coming years in addition to the billions of dollars already in place to encourage TSMC to add production capacity and fund Japan's chip venture, Rapidus Corp.
- In May, Prime Minister Fumio Kishida met with the heads of the world's largest chipmakers to bring semiconductor production and investment to Japan.
- Price Action: TSM shares traded lower by 0.05% at $98.00 premarket on the last check Tuesday.
- Photo via Wikimedia Commons
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