Thursday, January 13th 2022

Japanese Government Expects 10 Years of Fidelity in Return for Subsidies to Chipmakers

As we know, the Japanese government has offered some subsidies for the TSMC/Sony joint venture to build a chip fab in the Kumamoto Prefecture, but now it seems like the Japanese government has decided to ask for assurances. The Japanese government is said to have put aside US$5.2 billion, a relatively small amount even compared to India, to help semiconductor manufacturers that want to build new fabs in Japan. Of that, US$3.49 million is already said to be earmarked for the TSMC/Sony joint venture, in exchange for around 10 years of production in Japan.

The rules are apparently not quite finalised as yet, as the government is said to be getting public comments on the specific rules that should apply to the subsidies. One of the conditions could be that the foundry would have to ramp up production in times of shortages, others might include the protection of key Japanese technologies, or ongoing investment into the fab(s), although the latter is usually something that is done simply out of good business practice. Time will tell how things play out, but it seems like the Japanese government has given a bit more thought to its subsidies than what has been announced by some other nations so far.
Source: Nikkei
Add your own comment

11 Comments on Japanese Government Expects 10 Years of Fidelity in Return for Subsidies to Chipmakers

#1
bonehead123
way to little, way to late .....shame shame on you Japan, when you fail to plan, you plan to fail, and this is it ! :)
Posted on Reply
#2
LabRat 891
Cynical take: These companies will fulfill the requirements to the bare minimums only.
Posted on Reply
#3
AlwaysHope
IF that chip plant is actually built, it will do well until... the next big earthquake.
I feel sorry for Japan though, have to rely on nuclear power as well but that earthquake prone area! :eek:
Posted on Reply
#4
Fourstaff
LabRat 891Cynical take: These companies will fulfill the requirements to the bare minimums only.
That will be the definition of requirements no? If my job asks me to work 40 hours a week, why would I work 41 ...
Posted on Reply
#5
Caring1
FourstaffThat will be the definition of requirements no? If my job asks me to work 40 hours a week, why would I work 41 ...
Salaried position where you work as long as they like. :p
Posted on Reply
#6
lexluthermiester
bonehead123way to little, way to late .....shame shame on you Japan, when you fail to plan, you plan to fail, and this is it ! :)
There is some context missing there. Japan is not hurting as bad as other countries. Yes they want more business, but they are not hard up for it. So they don't need to be as generous. Couple that with the fact they they have a workforce that is highly skilled, has a devoted work ethic and the general quality of products coming out of Japan is very high, and they don't need to compete as vigorously.
LabRat 891Cynical take: These companies will fulfill the requirements to the bare minimums only.
No, they won't. The leaders of industry are learning and taking to heart what we have been trying to tell them for decades, high quality sells better and we expect our tech to last as long as possible.
Posted on Reply
#7
Chomiq
lexluthermiesterThere is some context missing there. Japan is not hurting as bad as other countries. Yes they want more business, but they are not hard up for it. So they don't need to be as generous. Couple that with the fact they they have a workforce that is highly skilled, has a devoted work ethic and the general quality of products coming out of Japan is very high, and they don't need to compete as vigorously.
1. Skill level of Japanese workforce is dropping with each year.
2. "Devoted work ethic" means 80+ work hours a month, with unpaid overtime. That's terrible for efficiency.
3. High tech made by Japanese companies is usually manufactured outside of Japan due to cost and space limitation.

On top of that ask anyone that deals with a Japanese company and you'll find out that making any business decision, even a basic one, can take months. On top of that they also tend to have their own "vision" which they desperately push on you, even if it makes no sense.
Posted on Reply
#8
lexluthermiester
Chomiq1. Skill level of Japanese workforce is dropping with each year.
No, it isn't. Products coming out of Japan are holding their level of quality. You can't maintain that without a consistently skilled workforce.
Chomiq2. "Devoted work ethic" means 80+ work hours a month, with unpaid overtime. That's terrible for efficiency.
I wasn't talking about scheduling of work shifts and time off. Context is important. I was talking about the Japanese focusing on the work being done, doing a quality job and the general commitment to job competency.
Chomiq3. High tech made by Japanese companies is usually manufactured outside of Japan due to cost and space limitation.
While there is some truth to that, what is made in Japan is of the highest quality. Capacitors and electronic SMDs for example. When people look for the highest of quality, the seek out Japanese brands. Batteries of all types? Yup Japan makes the best.
ChomiqOn top of that ask anyone that deals with a Japanese company and you'll find out that making any business decision, even a basic one, can take months.
That's a GOOD thing. The Japanese are very careful and methodical. They generally don't do anything without carefully thinking it through from all angles. It's frustrating, but it has benefits. However, once they decide on a course of action, they are lighting freaking fast getting it done and with nearly unmatched incredible precision.
ChomiqOn top of that they also tend to have their own "vision" which they desperately push on you, even if it makes no sense.
Yeah, that's happened..
Posted on Reply
#9
Chrispy_
$3.5M is pitiful. That barely buys one piece of the hundreds of various lithography equipment stages needed for even a single-pipeline fab.
They don't have a price list but just single components from www.asml.com/en/products/euv-lithography-systems sell for multiple millions.

What a joke. If they'd said $3.5B I wouldn't have given it a second glance.
Posted on Reply
#10
lexluthermiester
Chrispy_$3.5M is pitiful. That barely buys one piece of the hundreds of various lithography equipment stages needed for even a single-pipeline fab.
They don't have a price list but just single components from www.asml.com/en/products/euv-lithography-systems sell for multiple millions.

What a joke. If they'd said $3.5B I wouldn't have given it a second glance.
Fairly certain that should be "Billion".
Posted on Reply
#11
Easo
lexluthermiesterFairly certain that should be "Billion".
I mean, it does at the very start - 5.2 billion. It's just some money is already set aside for this, if I understood article correctly.
Posted on Reply
Add your own comment