TSMC disclosed plans to have second manufacturing facility in Japan
TSMC, the leading semiconductor manufacturer, has announced plans to construct a second foundry in Japan, in collaboration with local partners. This move comes shortly before the official opening of its first facility in the country. TSMC, known for serving prominent clients such as Apple and Nvidia, controls a significant portion of the global silicon wafer production, which is vital for various applications ranging from smartphones to automotive and defense systems.
Navigating through geopolitical tensions, especially between the United States and China, TSMC has faced challenges related to technology import restrictions and trade disputes, given Taiwan’s status as its primary manufacturing hub.
The joint statement issued by TSMC and its partners, including Sony Semiconductor Solutions Corporation, DENSO, and Toyota, reveals that the second factory is slated to commence operations by the end of 2027. This announcement follows the upcoming inauguration of the first facility, scheduled for February 24, as confirmed by company chairman Mark Liu.
The joint venture, named Japan Advanced Semiconductor Manufacturing (JASM), where both factories will be situated in Kumamoto prefecture, will witness a significant investment exceeding US$20 billion, backed by strong support from the Japanese government. JASM plans to kick off construction of its second fab by the end of 2024, aiming to meet the escalating customer demand while enhancing production scale and supply chain efficiency.
The combined production capacity of both plants is anticipated to exceed 100,000 12-inch wafers per month, contributing to the creation of over 3,400 high-tech professional jobs. Additionally, TSMC’s board of directors has approved a capital injection of up to $5.26 billion to JASM, further fueling the expansion plans.
This strategic move aligns with Japan’s efforts to bolster domestic semiconductor production, with a government-backed initiative involving substantial investments in crucial semiconductor and generative AI technologies. A Japanese trade ministry official confirmed that part of this initiative includes supporting the construction of TSMC’s second plant in Kumamoto.
Business News: TSMC disclosed plans to have second manufacturing facility in Japan
