Japan funds $338 million TSMC chip development project

The country is hoping to increase investment in semiconductor research to combat the ongoing global shortage

Japan has approved a $338 million (£238 million) semiconductor research project that will see Taiwan Semiconductor Manufacturing Company (TSMC) develop new chip technology in the country, amid an ongoing global shortage.

Over 20 Japanese companies are set to take part in the project worth 37 billion yen ($338 million), of which the Japanese government will pay half, according to the AFP.

The research will focus on tech for 3D chip assembly, to allow the creation of components that are more dense but still small, with the intention of boosting Japan's competitiveness in this key sector.

Construction of a trial facility will begin this summer at the National Institute of Advanced Industrial Science and Technology in the city of Tsukuba, about 60km northeast of Tokyo, with a launch date expected in 2022.

Last month, TSMC, the world's largest contract chipmaker, was reportedly making plans to build five more chip plants in Arizona. As the company makes most of its chips in Taiwan, the project in Arizona would represent a major expansion of TSMC's plans to shift its manufacturing to the US.

Discussions around building a TSMC semiconductor plant in Europe reportedly collapsed last month. There had been talks about opening a factory in the region to remedy the impact of the global semiconductor shortage on the continent, with the EU seeking to increase its share of global semiconductor production from 9% to 20% by 2030. The collapse in the talks has meant the chip company switched its attention to markets in North America.

Cisco CEO Chuck Robbins said in April the global semiconductor shortage might last for another six months, although the crisis is unlikely to be resolved until 2022. However, Dell founder and CEO Michael Dell said in May that he expects the chip crisis "will probably continue for a few years".

Featured Resources

How to choose an AI vendor

Five key things to look for in an AI vendor

Download now

The UK 2020 Databerg report

Cloud adoption trends in the UK and recommendations for cloud migration

Download now

2021 state of email security report: Ransomware on the rise

Securing the enterprise in the COVID world

Download now

The impact of AWS in the UK

How AWS is powering Britain's fastest-growing companies

Download now

Recommended

Toshiba aims to reassemble board after “management chaos”
business management

Toshiba aims to reassemble board after “management chaos”

14 Jun 2021
TSMC plans for new semiconductor plant seen as major win for Japan
Hardware

TSMC plans for new semiconductor plant seen as major win for Japan

11 Jun 2021
Hong Kong considers own centralised digital currency
digital currency

Hong Kong considers own centralised digital currency

10 Jun 2021
Japan and Finland collaborate on 6G development
Network & Internet

Japan and Finland collaborate on 6G development

9 Jun 2021

Most Popular

Ten-year-old iOS 4 recreated as an iPhone app
iOS

Ten-year-old iOS 4 recreated as an iPhone app

10 Jun 2021
Fastly blames software bug for major outage
public cloud

Fastly blames software bug for major outage

9 Jun 2021
GitHub to prohibit code that’s used in active attacks
cyber security

GitHub to prohibit code that’s used in active attacks

7 Jun 2021