Chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) plans to set up a second semiconductor manufacturing plant in Japan with an investment of about $7.4 billion, Japanese newspaper Nikkan Kogyo Shimbun reported.
TSMC will build the new plant in the southwestern region of Kumamoto to manufacture 5nm and 10nm chips from 2025, the report said.
A TSMC spokesperson declined to comment on the development but instead pointed to CEO CC Wei’s comment from the company’s last quarterly earnings call in January, which said, “In Japan, we are building a specialty technology fab, which will utilize 12 and 16 nanometer, and 22/28 process technologies. Volume production is scheduled for late 2024. We are also considering building a second fab in Japan, as long as the demand from customers and the level of government support makes sense.”
TSMC’s global expansion plans
TSMC has been looking to expand beyond Taiwan to places such as the US, Europe, and Japan. This expansion is also expected to be supported by subsidies offered by the host countries, which are looking at reducing their dependence on China.
The company has already started work at its massive chip factory in Arizona, while it continues to scout for locations for a factory in Europe. Experts believe this global expansion could significantly benefit the chipmaker even if the cost of production is much higher in the new locations.
“The construction cost of building and facilities for the US fab is up to 5x greater versus a fab in Taiwan, per TSMC,” said Sravan Kundojjala, an analyst at the market research firm TechInsights. “TSMC spends 80% of its CapEx on equipment and 20% on construction. Overall, a fab in the US can cost 80% higher than a fab in Taiwan. However, TSMC seeks to narrow this cost gap with government incentives.”
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2023-02-24 19:00:02
Link from www.computerworld.com
Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, is reportedly planning to invest around $7.4 billion to construct a chip factory in Japan in an effort to satisfy growing demand from clients ranging from automakers to consumer electronics companies.
The news follows the announcement of TSMC’s plans to construct a cutting-edge chip factory in Arizona that will source raw materials from the United States and hire thousands of workers.
The company will use the new Japanese plant, to be located in an industrial park near the city of Kagoshima, to begin producing chips utilizing 5-nanometer technology, according to a report from Japanese media outlet Nikkei.
In an effort to appease Japanese government officials, TSMC plans to sell a portion of the chips it produces in the Japanese factory to clients in Japan, while still exporting the majority of the chips to demand in other countries.
The company has been motivated to invest in the project due to increased demand from clients in the automotive industry and consumer electronics companies.
The new plant is expected to begin operations in 2022 and could eventually produce about 20,000 silicon wafers each month, to include both logic and memory chips.
The announcement serves to reinforce TSMC’s commitment to innovation and helping to ensure a reliable and secure supply chain.
Additionally, the decision to construct a factory in Japan is likely to have a positive impact on local employment and economic development in the Kagoshima region.
TSMC is also in talks to build a chip factory in the Chinese city of Shanghai, a move that could further bolster the company’s business in the region.
Overall, the move to invest in a second chip factory in Japan is seen as a positive one and is likely to further cement TSMC’s role as one of the world’s leading contract chipmakers.