Japanese leader visits new chip factory, stressing ties with Taiwan and support for key technology

TOKYO (AP) — Japanese Prime Minister Fumio Kishida visited a new semiconductor plant for which his government has pledged more than 1 trillion yen ($7 billion) of support to secure a steady supply of chips on Saturday.

“I believe this project will have positive ripple effects throughout Japan. It is key for not only the semiconductor industry but also a wide range of businesses such as electric vehicles and electronics,” he said while touring the facility.

The new plant on the southwestern island of Kyushu, majority owned by the Taiwan Semiconductor Manufacturing Co., is the Taiwanese semiconductor giant’s first in Japan.

Kishida also expressed sympathy to Taiwan following an earthquake that left at least 12 people dead.

Japanese companies like Sony, Denso and Toyota are investing in the TSMC subsidiary that opened the plant in February, although the Taiwanese giant retained an 86.5% stake in the Japan Advanced Semiconductor Manufacturing Company. The project underlines Japan’s hopes to regain its presence in the computer chips industry.

Four decades ago, Japan dominated in chips, with Toshiba and NEC controlling half the world’s production. That’s declined to under 10%, amid competition from South Korean, U.S. and European manufacturers, as well as TSMC.

Japan has recently earmarked about 5 trillion yen ($33 billion) to revive its chips industry, seeking to become less dependent on imports in the wake of pandemic-era shortages that affected auto production and other industries for months.

Ensuring an ample supply of the most advanced chips is vital with the growing popularity of electric vehicles, as well as artificial intelligence.

Private sector investment totals $20 billion for the plants in the Kumamoto region,