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In order to strengthen the semiconductor layout, Japan will provide 75 billion yen to the Sumco wafer factory to increase production capacity

Update time : 2023-07-13 13:53:21

To revive the semiconductor industry, the Japanese government has announced that it will provide subsidies of up to 75 billion yen to Sumco Corp., a major producer of silicon wafers, to achieve higher production capacity.

According to Nikkei, Sumco plans to invest 225 billion yen (currently about 11.43 billion yuan) in plant and equipment, with a third of the cost subsidized by Japan's Ministry of Economy, Trade and Industry (METI).
Sumco was jointly established in 1999 by the former Sumitomo Metal Industries (one of the predecessors of Nippon Steel, a former Japanese steel monopoly) and Mitsubishi Materials, fully absorbing the semiconductor business of both companies. The company ranks second in the world in basic materials and substrates for semiconductor circuits, after Japan's Shinetsu Chemical. It is worth mentioning that Shinetsu and Sumco's combined share can reach more than half of the global market.
Sumco, whose main production facility is in Saga Prefecture, Kyushu Island's southernmost tip, plans to build an advanced chip factory in a nearby town, with the new plant expected to start wafer production in 2029. Japan has been subsidizing chipmakers and suppliers, including TSMC, to revive the industry domestically as countries expand control of supply chains critical to key industries.
Japan has provided 2 trillion yen (currently about 101.60 billion yuan) in financial support for the semiconductor industry in two years, such as last year's announcement of a subsidy of 476 billion yen (currently about 24.181 billion yuan) for the TSMC plant in Kumamoto Prefecture. In addition, the Japanese government plans to provide up to 40.50 billion yen for Ibiden chip packaging plant and up to 11.10 billion yen for Canon manufacturing equipment plant. In June, Japan Investment Corporation announced it would launch a tender for photoresist manufacturer JSR, hoping the government would restructure the industry.

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