Sumco Secures $530M Subsidy for Wafer Plant

According to the Nikkei, Sumco, a Japanese wafer manufacturer that was established through the merger of Sumitomo Metals and Mitsubishi Materials in 1999, is set to receive a subsidy of $530 million from the Japanese government. The purpose of this subsidy is to support Sumco's construction of a new factory worth $1.6 billion. The Ministry of Economy, Trade and Industry (METI) will contribute one-third of the total cost as part of Japan's efforts to regain prominence in the semiconductor industry.

Sumco currently holds the second-largest market share for raw wafers globally, trailing behind Shin-Etsu Chemical, another Japanese company. Together, Shin-Etsu and Sumco command half of the worldwide market. The completion of Sumco's new factory is scheduled for 2029, at which point it will commence production.

In addition to the financial assistance provided to Sumco, the Japanese government has made other investments in the chip industry. These include allocating $36 billion to Rapidus, a startup focused on manufacturing 2nm integrated circuits (ICs), $3.4 billion towards a TSMC fab located in Kyushu, $290 million for an Ibiden packaging plant, and $78 million for a Canon manufacturing equipment factory. Furthermore, the government-backed Japanese Investment Corp has proposed acquiring Japanese photoresist manufacturer JSR for $6.3 billion.