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The Japanese government will provide an additional \u00a5732 billion ($4.86 billion) in subsidies for\u00a0Taiwan Semiconductor Manufacturing Co.<\/a>\u00a0to expand its plant in the country, Economy Minister Ken Saito said on Saturday.<\/p>\n \u201cTSMC is the most important partner for Japan in realizing digital transformation, and its Kumamoto factory is an important contributor for us to stably procure cutting-edge logic chips that is extremely essential for the future of industries in Japan,\u201d he said at the opening ceremony for TSMC\u2019s Kumamoto factory.<\/p>\n The chipmaker, Taiwan\u2019s largest company, plans to start shipping logic chips for CMOS camera sensors and automobiles from the facility in Kumamoto on the island of Kyushu by the end of this year through its venture with iconic local companies including\u00a0Sony Group Corp.<\/a>\u00a0and\u00a0Toyota Motor Corp.<\/a>\u00a0The government has already allocated \u00a5476 billion for the factory.<\/p>\n The new aid will go toward construction of a new fabrication building next to the existing one, the company\u2019s first in Japan. Known as TSMC Fab-23 Phase 2, the project announced by TSMC earlier this month will produce chips as narrow as 6 nanometer and plans mass production by 2027.<\/p>\n Japan has paid trillions of yen for companies such as TSMC,\u00a0Samsung Electronics Co.<\/a>\u00a0and\u00a0Micron Technology Inc<\/a>. to move some operations to the country to secure supply of chips used in everything from automobile production to mobile phones.<\/p>\n \u201cGovernments around the world are fiercely competing by throwing in a large amount of money so that they can secure domestic supply of chips, and Japan investing this amount of money is necessary for us to foster further development of industries and economic security,\u201d the minister said. \u201cWe learned from mistakes in the past, and I\u2019m sure we have dazzled the rest of the world by the speed with which we have implemented.\u201d<\/p>\n<\/div>\n\nSubscribe to the Eye on AI newsletter to stay abreast of how AI is shaping the future of business. Sign up<\/a> for free.<\/div>\n<\/div>\n