Japan to give Sumco $530 million to boost wafer capacity -Nikkei
TOKYO (Reuters) -Japan will give Sumco Corp, a major maker 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 controls about half the global wafer market, jumped 8%, compared with a 0.8% rise in the benchmark Nikkei 225 index.
It is not true that a decision on subsidy for Sumco has been made at the current time, Japan's industry minister Yasutoshi Nishimura said, adding that silicon wafers are important materials for semiconductors.
Sumco did not immediately respond to a request for comment.
Japan has been subsidising chipmakers and suppliers, including Taiwan's TSMC, 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)
