Japan to give $530m for new Sumco silicon wafer plants at home

Subsidy part of country's plans to bolster semiconductor supply chain

Sumco's silicon wafers, one of the fundamental building blocks of semiconductors. Japan considers the domestic production of semiconductor materials as vital for the country's economic security. (Photo courtesy of Sumco)

RIHO NAGAO, Nikkei staff writer

July 11, 2023 02:00 JST

TOKYO -- Japan will subsidize domestic company Sumco's new silicon wafer factories in the country's south by up to 75 billion yen ($530 million), Nikkei has learned, part of the government's efforts to bolster the country's semiconductor supply chains.

A producer of silicon wafers used in semiconductor circuits, Sumco expects investment for the new factory buildings and production equipment to total 225 billion yen, of which Japan's Ministry of Economy, Trade and Industry will cover one-third.