📰 TSMC Begins Chip Production at New Japan Facility
The new Kumamoto fab marks a major milestone for TSMC’s expansion into Japan, with a second advanced plant planned by 2027.
Taiwan Semiconductor TSM 0.00%↑ has officially started mass production at its new semiconductor facility in Kumamoto Prefecture, Japan. The plant, a result of TSMC's joint venture with Sony and Denso, will manufacture logic chips for applications in Sony’s cameras and automotive systems. The Kumamoto facility, which utilizes 28nm to 12nm technologies, aims to meet growing demand for cost-effective chips. While these technologies are not the latest, they remain essential for applications prioritizing cost efficiency. TSMC's new plant is expected to support key customers like Sony and Denso, who rely on high-quality, reliable chips for their products, including automotive processors.
A second fab, expected to begin construction in March 2025 and open by 2027, will focus on producing more advanced 6nm and 7nm chips. This expansion is part of TSMC’s broader $20 billion investment in Japan, with significant subsidies from the Japanese government. Once both facilities are fully operational, they will be capable of producing 100,000 12-inch wafers per month. The decision to build the Kumamoto fabs aligns with TSMC’s strategy to diversify its manufacturing footprint, secure supply chains, and deepen its ties with key partners like Sony and Denso, whose technologies demand the highest levels of reliability.
The Kumamoto project not only strengthens TSMC’s position in the automotive and consumer electronics sectors but also signifies the growing importance of Japan in the global semiconductor landscape. TSMC's move into Japan follows a trend of tech giants expanding their manufacturing operations outside Taiwan, particularly amid increasing geopolitical tensions and a push for more localized production. As the global demand for advanced chips continues to surge, TSMC’s investment in Japan is expected to play a pivotal role in addressing supply chain concerns and meeting the needs of its customers in critical industries such as automotive, AI, and consumer electronics.
Source: Kyodo News+, Nikkei Assia, SiliconAngle
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