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Japan Submits To The Diet A Proposal To Establish Exclusive Regulations For Subsidizing The New Chip Factories In December As Soon As Possible

Japan Submits To The Diet A Proposal To Establish Exclusive Regulations For Subsidizing The New Chip Factories In December As Soon As Possible

After the outbreak of the epidemic, important industries such as global automobiles are generally faced with chip shortage interference, and countries have begun to regard chips as a national security issue. The Japanese government has begun to lay a legal foundation for subsidizing new domestic advanced semiconductor factories. The first to benefit is expected to be the foundry that TSMC is scheduled to establish in Kumamoto Prefecture. The Nikkei Asian Review reported on November 8 that the Japanese government will submit a bill to the Diet to change the law as soon as December this year to formulate exclusive regulations for subsidizing the construction of new chip factories to increase domestic chip supply. The report pointed out that the Japanese government plans to update a decree that currently only applies to the 5G wireless network development plan, delineating semiconductors as the latest area that needs to be developed first. In this way, the government can allocate hundreds of millions of dollars from the supplementary budget for the 2021 fiscal year to create a special incentive fund under the "New Energy and Industrial Technology Development Organization." According to reports, the law requires that once qualified factories begin to operate, they must maintain stable production, investment, and technological research and development activities, and, at the request of the government, increase production when there is a shortage of supply. The industry must also abide by the law and prevent the leakage of confidential technology.
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