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on March 29th

Japanese Prime Minister Supports, TSMC Kumamoto II Plant Has Confidence

TSMC Kumamoto Plant 1 was completed in February this year, and the second plant will start construction before the end of the year. According to government sources cited by Kyodo News Agency, Japanese Prime Minister Fumio Kishida will visit Kumamoto Prefecture as soon as April 6th to inspect TSMC's new plant. The inspection itinerary of Kishida this time is mainly based on economic security, hoping to strengthen the resilience of Japan's semiconductor supply chain and provide necessary support to TSMC.

According to industry insiders, the Japanese government's investment strategy in the semiconductor industry is fast, ruthless, and accurate, with a total subsidy of about 1.2 trillion yen to TSMC. In addition, heavyweight guests such as Kishida will visit, and TSMC Chairman Andy Lau and President Wei Zhejia will attend the reception. Founder Zhang Zhongmou has not yet been confirmed.

At the same time, due to the Japanese Prime Minister's statement of support for TSMC through actions, the Kumamoto II plant plan is more certain. In the future, even the third plant and advanced packaging plant are expected to be evaluated by TSMC with the support of the Japanese government.

TSMC Kumamoto Plant 1 was just opened in February. On the day of the opening ceremony, Fumio Kishida delivered a congratulatory message via video, praising Kumamoto Plant's production of advanced semiconductors, which is an important step for the semiconductor industry in both regions. He is pleased to see Kumamoto Plant become an important base for TSMC's global layout strategy. Two days later, on February 26th, Kishida met with TSMC Chairman Liu Deyin and President Wei Zhejia at his official residence, highlighting his high regard for TSMC's investment in setting up factories in Japan.

Due to TSMC's planned construction of Kumamoto II by the end of the year, Kishida will also confirm the preparations for the construction of the II plant through this visit itinerary and exchange views with relevant personnel. He intends to use this visit to attract overseas enterprises to make large-scale investments in the local area.

According to reports, as governments around the world compete fiercely to ensure the safety of semiconductor supply chains, Japan is committed to strengthening its domestic production base. TSMC's plan to build a factory in Kumamoto is considered a national investment project by the Japanese government, and the Japanese side also provides a total subsidy of up to 1.2 trillion yen for TSMC's Kumamoto 1 and 2 factories. The subsidy amount for Factory One is 476 billion yen, and the highest subsidy amount for Factory Two is 732 billion yen.

TSMC Kumamoto Plant 1 started construction in April 2022. With the support of the Japanese government's subsidy policy and cooperation with local construction companies and other partners, it was quickly completed in just 20 months. It is scheduled for mass production in the fourth quarter of this year, with the production of 12nm, 16nm, 22nm, and 28nm process chips.

As for Kumamoto Plant 2, which will start construction at the end of this year, it will produce Japan's most advanced 6-nanometer process and is expected to start production by the end of 2027. TSMC Kumamoto Plant 1 and Plant 2 have a combined monthly production capacity of up to 100000 pieces.
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