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Japan to subsidize TSMC's Kumamoto plant by up to $3.5bn

Backing to come from METI fund intended to strengthen domestic chip sector

The Taiwanese company and its Japanese partners could start receiving payments by the end of this year.   © Reuters

TOKYO -- Japan's Ministry of Economy, Trade and Industry (METI) will offer subsidies worth up to 476 billion yen ($3.5 billion) for a semiconductor plant being built in Kumamoto Prefecture by Taiwan Semiconductor Manufacturing Co. (TSMC), Sony Group and Denso, the ministry said on Friday.

This will be the first project to win subsidies from a 617 billion yen public fund created to strengthen Japan's semiconductor industry. Total investment in the plant will come to about $8.6 billion, with Japan's government supporting about 40% of the costs.

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