After announcing that he would build a 5nm fab in the United States last year, Taiwan Semiconductor Manufacturing Co Ltd announced this month the second wave of overseas factory construction-- building new foundry in Japan, and the Japanese government has spared no expense to subsidize it, worth as much as 400 billion yen, or about 22.6 billion yuan.

According to previous news, Taiwan Semiconductor Manufacturing Co Ltd's Japanese factory, located near Sony Group Corp's sensor factory, plans to hire more than 2000 employees, start construction in 2022 and start production in 2024.

The process under construction is mainly 22nm and 28nm, which is different from the advanced 5nm technology built in the United States, the process of the Japanese factory is mainly aimed at special areas, and it is expected that one of the most important customers is Sony Group Corp, who is responsible for the OEM of CIS sensors, as well as Japanese automotive electronic chips, etc., so there is no need for the most advanced technology.

Taiwan Semiconductor Manufacturing Co Ltd's total investment in building the plant in Japan is as high as 1 trillion yen, or about 56.2 billion yuan, but this money does not need Taiwan Semiconductor Manufacturing Co Ltd to invest entirely on his own, and the Japanese government will give a huge subsidy.

A few days ago, the Japanese government officially announced the subsidy program, adding an additional budget of 600 billion yen in 2021 to subsidize semiconductor factories expanding production in Japan, of which Taiwan Semiconductor Manufacturing Co Ltd received an exclusive subsidy of 400 billion yen, or about 22.6 billion yuan.

Another 200 billion yen subsidy will be given to Micron Japan and the local armor company.