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Japan chip subsidy requires 10-year pledge from TSMC, others

Production commitment part of proposed rules for supporting new factories

Japan is set to shoulder about half the cost of Taiwan Semiconductor Manufacturing Co.'s joint plant with Sony Group in Kumamoto Prefecture.   © Reuters

TOKYO -- Japan plans to require chipmakers to maintain production here for about 10 years to qualify for a new subsidy designed to encourage more players to set up shop in the country.

With semiconductors becoming more vital to a range of products, from smartphones and home appliances to cars, Japan and other countries are scrambling to shore up supply. The chips are also increasingly considered crucial to national security. 

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