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Japan starts laying legal groundwork for TSMC subsidy

Production requirement weighed to help offset future shortages

Taiwan Semiconductor Manufacturing Co.'s headquarters in Hsinchu, Taiwan. TSMC announced in October that it would build its first Japanese factory.   © Reuters

TOKYO -- The Japanese government will establish a legal framework for subsidizing new domestic plants for advanced semiconductors, starting with Taiwan Semiconductor Manufacturing Co.'s planned facility in Kumamoto Prefecture.

Countries around the world increasingly see chips as a national security concern as a global shortage causes widespread disruptions in the auto sector and beyond. To bolster domestic supplies, the government aims to submit legislative changes to the parliament as early as December and set explicit rules on subsidizing the construction of new facilities.

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