Japan's Semiconductor Push Aims to Bolster Nvidia's Key Supplier TSMC With $10B Subsidy
Portfolio Pulse from Anusuya Lahiri
Japan plans to provide an additional $10 billion in subsidies for two key semiconductor projects. The country proposes to allocate up to 900 billion yen for a second Taiwan Semiconductor Manufacturing Company Ltd (TSMC) factory in Kumamoto, Japan, and 590 billion yen for Japan’s homegrown chip venture Rapidus Corp. TSMC is a primary supplier of Apple Inc and Nvidia Corp. The second TSMC factory will likely cost roughly 2 trillion yen and make 6-12 nanometer logic chips, devices catering to products like electric vehicles.
October 25, 2023 | 11:47 am
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POSITIVE IMPACT
Apple, a customer of TSMC, could potentially benefit from increased production capacity at TSMC's new factory.
As a customer of TSMC, Apple could potentially benefit from increased production capacity at TSMC's new factory. This could lead to more stable supply and potentially a positive impact on Apple's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
Nvidia, a customer of TSMC, could potentially benefit from increased production capacity at TSMC's new factory.
As a customer of TSMC, Nvidia could potentially benefit from increased production capacity at TSMC's new factory. This could lead to more stable supply and potentially a positive impact on Nvidia's stock price.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
POSITIVE IMPACT
TSMC, a primary supplier of Apple and Nvidia, is set to receive significant subsidies from the Japanese government for a second factory. This could potentially increase TSMC's production capacity.
The subsidies from the Japanese government will likely help TSMC expand its production capacity, which could lead to increased revenues and potentially a positive impact on its stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100