Taiwan Semiconductor Industries secures nearly USD2B in support from China, Japan for strategic investments

(MENAFN) Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s leading chipmaker, recently announced that it has received substantial financial support totaling NTUSD62.5 billion (approximately USUSD1.95 billion) from the governments of China and Japan. This significant sum has been granted over the past few years to bolster TSMC’s investments in these two crucial markets. According to financial data from the first half of this year, TSMC received NTUSD7.96 billion in subsidies from both countries, building on the NTUSD47.55 billion in aid provided in 2023 and NTUSD7.05 billion in 2022. This cumulative financial backing reflects the strategic importance that both Japan and China place on the semiconductor industry, which is increasingly recognized globally as a critical component of national security and technological advancement.

The funding from the Chinese and Japanese governments has been instrumental in supporting TSMC's ambitious projects in Kumamoto, Japan, and Nanjing, China. These investments are part of a broader effort by both nations to strengthen their domestic semiconductor industries, ensuring they remain competitive in a sector that is vital to various high-tech industries, including electronics, automotive, and defense. The substantial subsidies underscore the global race to secure a stable supply of semiconductors, with countries around the world committing large sums to attract and support leading chipmakers like TSMC.

As the semiconductor industry continues to be viewed as a strategic asset, the financial assistance provided to TSMC by China and Japan highlights the growing importance of securing advanced manufacturing capabilities within national borders. This trend is likely to continue as governments worldwide seek to build resilient supply chains and reduce dependency on foreign semiconductor producers. TSMC’s receipt of nearly USUSD2 billion in subsidies is a clear indication of the high stakes involved in the global semiconductor competition, as well as the critical role that companies like TSMC play in shaping the future of technology and innovation. 

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