Japanese government sources confirm that Kumamoto is one of the candidates for TSMC to set up a factory.

TSMC's plan to build its first fab in Japan has attracted a lot of attention. It has been reported earlier that TSMC's new plant, which will be based in Kumamoto Prefecture, Kyushu, Japan, will operate as early as 2023, mainly using 28nm technology, with a monthly production capacity of 40, 000 wafers. The news has been confirmed recently.

Japanese government sources have revealed that TSMC is exploring building production plants in Japan, and Kumamoto prefecture is one of the candidates, Kyodo news agency reported.

Kumamoto is characterized by the abundance of water needed for semiconductor production. The concentration of related industries is also one of the backgrounds for becoming a candidate for setting up a factory. According to Nikkei, the Kumamoto plant is expected to be mainly used to manufacture image sensors for TSMC's largest Japanese customer, Sony.

However, according to government sources, TSMC's request for financial support for the plant may require a subsidy of hundreds of billions of yen (100 billion yen, about 5.9 billion yuan). TSMC pointed out earlier that the cost of production in Japan is very high. Therefore, whether Japan can provide large-scale support will be the key to promoting the establishment of TSMC plants.

So far, TSMC has not responded positively to the partners and construction sites of Japanese factories.

However, in the context of digital transformation and increasingly fierce competition in science and technology, ensuring a stable supply of semiconductors has become an important issue for national development. The Semiconductor Digital Industry Strategy collected by Japan in June is clear and will strive to achieve mass production of cutting-edge semiconductors. Taking into account TSMC, the document sets out the policy of ensuring the manufacturing base through joint ventures with overseas companies.