Sumco is to build a new factory for $1.6 billion and the Ministry of Economy, Trade and Industry (METI) is contributing a third of the cost as part of Japan’s bid to regain a leading place in the semiconductor industry.
Sumco has the second-largest market share for raw wafers after Shin-Etsu Chemical, also of Japan. Together, Shin-Etsu and Sumco have half the world market.
Sumco’s new factory is scheduled to start production in 2029.
Other investments by the Japanese government in chips are the $36 billion Rapidus startup to make 2nm ICs, $3.4 billion towards a TSMC fab in Kyushu, $290 million for an Ibiden packaging plant and $78 million for a Canon manufacturing equipment factory.
Also, the government-backed Japanese Investment Corp has proposed a buy-out of Japanese photoresist manufacturer JSR for $6.3 billion.
