Japan to give Sumco $530 mln to boost wafer capacity -Nikkei (updated)

Shin-Etsu Chemical Co

11/07/2023 02:00

(Adds share reaction)
       TOKYO, July 11 (Reuters) - Japan will give Sumco Corp
 3436.T , a major producer of silicon wafers, a subsidy of up to
75 billion yen ($530 million) to fund additional capacity as
part of efforts to bolster the country's semiconductor industry,
the Nikkei newspaper reported on Tuesday.
    Sumco plans to invest 225 billion yen in factory buildings
and equipment, with the subsidy from Japan's METI (Ministry of
Economy, Trade and Industry) covering a third of the cost,
Nikkei said.
    Shares in Sumco, which with Shin-Etsu Chemical  4063.T 
controls about half the global wafer market, jumped 8%, compared
with a 0.8% rise in the benchmark Nikkei 225 index  .N225 . 
    Japan has been subsidising chipmakers and suppliers,
including Taiwan's TSMC  2330.TW , to reinvigorate the industry
domestically and as countries extend control over a supply chain
vital to key sectors. 

($1 = 141.3300 yen)

 (Reporting by Sam Nussey; Editing by Richard Chang and
Muralikumar Anantharaman)
 ((sam.nussey@tr.com;))