Global "chip subsidy war" is in full swing.
Recently, the semiconductor industry ushered in two major news, the European Union and Japan respectively provided large subsidies to semiconductor-related enterprises, aimed at promoting the development of the local semiconductor industry. Among them, Infineon and TSMC may benefit from this.
Infineon received 920 million euros in EU subsidies
On February 20, local time, the European Commission approved a state aid program totaling 920 million euros (about 6.985 billion yuan) to support German chip manufacturer Infineon's construction of a power semiconductor and analog/mixed-signal components plant in Dresden, Germany. The European Commission noted that the assistance will be given to Infineon in the form of a direct grant to support the latter's €3.5 billion investment.
According to public information, Infineon's Dresden new fab project, with an overall investment of 5 billion euros, started construction in March 2023 and aims to be put into use in 2026 and reach full production in 2031. Upon completion, the facility will manufacture discrete power devices and analog/hybrid ics for industrial, automotive, consumer and other sectors.
According to German plans reported to the European Commission, the project to support the construction of a chip plant in Dresden is aimed at meeting the needs of industrial as well as consumer applications. The products produced at the plant will feature two key categories of technologies: discrete power supply technology for power switching, management and control in electronic systems, and analog/mixed-signal integrated circuit technology.
Japan's Kumamoto Prefecture received 5.1 billion yen in semiconductor industry subsidies
On February 19, Japanese media reported that Japan decided to subsidize Kumamoto Prefecture, Kyushu region, where TSMC Kumamoto Plant is located, about 5.1 billion yen (about 248 million yuan) to promote the construction of a base for the production of semiconductors and other important supply chains.
According to incomplete statistics, Japan's Kumamoto Prefecture is currently promoting the construction of semiconductor projects, mainly TSMC Kumamoto plant, SONY image sensor factory, power technology test equipment investment, Mitsubishi Electric silicon carbide fab, ASE Technology back-end packaging plant, Sumco silicon fab.
Among them, the first wafer fab built by TSMC in Kikuyang Town, Kumamoto Prefecture, has been officially mass-produced in December 2024. The plant produces logic semiconductors in processes ranging from 12 nm to 28 nm, with a monthly capacity of 55,000 12-inch wafers.
At present, TSMC plans to build a second plant in Kumamoto Prefecture, which is expected to start construction in early 2025 and become operational in 2027. The total investment of the first and second plants is more than $20 billion (about 3.14 trillion yen). In addition, the Kumamoto prefectural government is considering providing land support for TSMC to build a third plant. On February 20, Japanese media also said that Japan's Kumamoto Prefecture is planning to build a new wastewater treatment plant for TSMC.
Other countries
Singapore: On February 18, Singapore's Prime Minister and Finance Minister Andrew Wong delivered the 2025 Budget and policy direction in Parliament. According to the budget, Singapore plans to spend S $1 billion (about US $745 million) to upgrade its research and development infrastructure, with semiconductors and biotechnology being the two main focus areas.
The United States: On February 14, it was reported that the Trump administration is conducting a review of the subsidy program of the Chip and Science Act passed in 2022 and plans to renegotiate some provisions. This move could have a profound impact on the future of the semiconductor industry in the United States.
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