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TSMC To Build Second Chip-Making Plant in Japan

Taiwan Semiconductor Manufacturing Co. is expanding its output in Japan with plans to build a second chip fabrication plant, a major victory for Prime Minister Fumio Kishida as his government seeks to boost domestic chip production.

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The world’s largest contract chipmaker said that Toyoto Motor Corp will also be joining as a new investor of Japan Advanced Semiconductor Manufacturing, Inc. (JASM), TSMC’s majority-owned manufacturing subsidiary in Kumamoto. The TSMC board approved an injection of no more than $5.26 billion in JASM, though it was not immediately clear how those funds would be used.

The facility will be close to the first TSMC plant in Kumamoto in southwestern Japan. TSMC said in a statement Tuesday that it would be adding 6/7 nanometer process technology, advancing the technology produced on that campus.

The second chip factory, also known as a fab, is scheduled to begin operation by the end of 2027.

Together with JASM’s first fab, the overall investment will exceed $20 billion with “strong support from the Japanese government”, the Hsinchu, Taiwan-based company said. TSMC is already considering a third Japanese factory using the even more advanced 3nm tech, Bloomberg has reported.

Image: TSCM