Taiwan Semiconductor Manufacturing Co (TSMC) is bolstering its presence in Japan with plans to construct a second chip fabrication plant, marking a significant win for Prime Minister Fumio Kishida’s administration as it aims to enhance domestic integrated circuit production.
The world’s largest contract chip manufacturer revealed that Toyota Motor Corp will join as a new investor in Japan Advanced Semiconductor Manufacturing (JASM), TSMC’s majority-owned manufacturing subsidiary located in Kumamoto Prefecture on Kyushu Island.
The TSMC board greenlit an investment of up to US$5.26 billion in JASM, although the specific allocation of these funds has not been disclosed.
The new facility will be situated near TSMC’s existing plant in Kumamoto. TSMC announced on Tuesday that it will introduce 6- and 7-nanometer process technologies, advancing semiconductor production capabilities at this campus. The second fab in Japan is slated to commence operations by the end of 2027.
In conjunction with JASM’s first fab, the total investment will surpass US$20 billion with “strong support from the Japanese government,” stated the Hsinchu, Taiwan-based company.
TSMC is also contemplating a third factory in Japan that will utilize even more advanced 3-nanometer technology, as reported by Bloomberg.
The chipmaker disclosed that the two facilities at the Kumamoto site will collectively have a monthly production capacity exceeding 100,000 12-inch wafers and will generate over 3,400 high-tech jobs.
Countries worldwide, including the United States, Japan, and Germany, are striving to establish comprehensive semiconductor supply chains domestically following a chip shortage during the pandemic, aiming to prevent future disruptions to the economy. Japan’s Ministry of Economy, Trade and Industry is preparing approximately ¥2 trillion (US$13 billion) in subsidies to drive chip investments, seeking to reclaim its status as a major semiconductor powerhouse, with TSMC having already received some grants. The Taiwanese chip giant’s first plant in Kumamoto is partially funded by Sony Group Corp and Denso Corp, utilizing technology as advanced as 12-nanometer, with mass production scheduled to commence later this year.
With the latest investment, TSMC, Sony, Denso, and Toyota will hold approximately 86.5%, 6%, 5.5%, and 2% stakes, respectively, in JASM.
TSMC is also constructing two advanced facilities in Arizona, but the US project has encountered delays due to labor and cost challenges. The Taiwanese firm has additionally outlined plans for a plant in Germany.
(Source: Reuters | SCMP | Nikkei Asia | NHK)
