Type to search

TSMC Factory Deal a Test for Japan Subsidies: Nikkei

Multibillion-dollar sweeteners seem out of character given Tokyo criticism of Chinese state aid for industry


The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters in Hsinchu, Taiwan. Photo: Reuters

Japan’s multibillion-dollar support package for Taiwan Semiconductor Manufacturing Co.’s first plant in the country will be a test for the government’s newly found interest in industrial subsidies, Nikkei Asia reported on Friday.

The deal seems out of character, Nikkei said, given that Tokyo has joined the US and European Union in criticising Chinese state aid for industry.

Japan’s courtship of TSMC, the world’s top contract chipmaker, comes at a time when the US and the EU are also moving to boost chip production on home soil. “Creating a stable chip supply chain is important, including from a national security perspective,” Minister of Economy, Trade and Industry Koichi Hagiuda said.

Read the full story: Nikkei Asia

READ MORE:

TSMC Unveils Japan Chip Plant Plan, Flags ‘Tight’ Capacity

George Russell

George Russell is a freelance writer and editor based in Hong Kong who has lived in Asia since 1996. His work has been published in the Financial Times, The Wall Street Journal, Bloomberg, New York Post, Variety, Forbes and the South China Morning Post.

logo

AF China Bond