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TSMC's Kumamoto Plant 2: 7.32 Trillion Yen Aid

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TSMC's Kumamoto Plant 2: 7.32 Trillion Yen Aid

The inauguration of TSMC's semiconductor manufacturing subsidiary, JASM, marked a significant milestone with the opening of its Kumamoto Plant 1 on February 24. Minister of Economy, Trade, and Industry for Japan, Saito Takeshi, announced substantial financial support for the project, disclosing a governmental commitment of 7.32 trillion yen for the upcoming Plant 2.

The distinguished attendees at the grand opening included Minister Saito Takeshi, TSMC founder Morris Chang, Chairman Liu Deyin, President Wei Che-chia, Director Zeng Fancheng, along with representatives from Sony, Denso, Kumamoto Prefecture Governor Kabashima Ikuo, and executives from Toyota.

Morris Chang, the visionary behind TSMC, emphasized on the 24th that the demand for semiconductors is poised for considerable growth. The strategic positioning of numerous wafer manufacturing capacities has been solidified, and the integration of AI in the upcoming years is anticipated to further augment production capabilities. The envisioned demand extends beyond the scale of tens or hundreds of thousands of wafers, encompassing the establishment of three, five, or even ten wafer plants.

As forecasted by research firm TrendForce, Taiwan, China, is projected to command a significant two-thirds share of advanced process foundry capacity by 2027, with Japan's global share expected to rise to 3%.

With TSMC holding approximately 86.5% of JASM's shares, the Japanese government's prior commitment of up to 476 billion yen for JASM's Kumamoto Plant 1 is in place. Coupled with the maximum subsidy of 7.32 trillion yen for Kumamoto Plant 2, the cumulative support surpasses an impressive 12 trillion yen.


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