The total investment in the project will be about 800 billion yen ($ 7 billion). The Japanese government intends to provide about half of this amount. The enterprise plans to produce semiconductors for smartphones, microcircuits for cars, etc.
The plant is slated to be built in southwestern Kumamoto Prefecture and is slated for commissioning in 2024. Denso, a leading Japanese auto parts manufacturer, also intends to participate in the project by installing its equipment at the plant. Denso is one of the leading suppliers of the auto giant Toyota Motor.
There is a shortage of semiconductors in the world’s auto and electronics manufacturers. It is associated primarily with the pandemic and the fire that broke out in March at the Japanese company Renesas Electronics plant, which accounts for 17% of the world microcircuit market.
In late September, the South Korean corporation Samsung Electronics also announced building a $ 17 billion semiconductor plant in Texas.