Japan allocates $5.2bn to fund chip plants by TSMC and others

TOKYO -- Japan is allocating about 600 billion yen ($5.2 billion) of its fiscal 2021 supplementary budget to support advanced semiconductor manufacturers, Nikkei has learned.

The government plans to invest about 400 billion yen in a new factory set up by the world's largest contract chipmaker Taiwan Semiconductor Manufacturing Co. in Kumamoto prefecture, southwest Japan. The remaining 200 billion yen will go toward setting up other new factories, with projects under consideration including by U.S. memory chipmaker Micron Technology and Japan's Kioxia Holdings.