Japan enacts subsidy payment for construction of advanced semiconductor production factory ... The first payment is Taiwan TSMC = South Korea report

Japan enacts subsidy payment for construction of advanced semiconductor production factory ... The first payment is Taiwan TSMC = South Korea report (Image courtesy of wowkorea)

The Nihon Keizai Shimbun reported on the 8th of this month that the Japanese government has put together a bill to subsidize the construction of a production plant for advanced semiconductors. [Photo] See larger photo According to this report, the bill being prepared by the Japanese government for submission to the extraordinary Diet session next month will be subsidized if a production plant for advanced semiconductors is built in Japan. The content of doing is included. The first target company is expected to be Taiwan TSMC, the world's largest foundry (semiconductor consignment production) company. TSMC announced on the 14th of last month that it plans to build a new factory in Kumamoto prefecture to produce 22-28 nanometer (1 nanometer: one billionth of a meter) process semiconductor. TSMC added that it plans to start construction of the plant next year and start mass production in 2024. The Japanese government plans to secure hundreds of billions of yen as a supplementary budget and create a New Energy and Industrial Technology Development Organization (NEDO) fund to support semiconductor production companies such as TSMC. The Government of Japan envisions stable production and continued investment and technological development as conditions for subsidy payments, and may also require that production be increased if domestic semiconductor supply is insufficient. I am considering it. The Nikkei explained these movements by the Japanese government as "an attempt to stably secure semiconductors, which are becoming more important in the economic security dimension." However, subsidies to semiconductor producers may violate the World Trade Organization's (WTO) industrial subsidy regulations. According to this provision, subsidies for the purpose of export support are regarded as violations of the WTO agreement, so-called "prohibited (red) subsidies". There is a view that the subsidy promoted by the Japanese government is a "countervailing duty (yellow) subsidy" that requires a judgment of illegality. Nikkei was concerned that "depending on the operation method, the risk of being sued by the WTO from abroad is not zero."

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