TSMC to Invest over 1 Trillion Yen in Second Japan Plant

TSMC to Invest over 1 Trillion Yen in Second Japan Plant

Economic News

Taiwan Semiconductor Manufacturing Company (TSMC) announced on February 24th that it will invest over 1 trillion yen (approximately 9.6 trillion won) in its second plant in Japan. The plant, located in Kumamoto Prefecture in southwestern Japan, has the potential to produce state-of-the-art semiconductors of 5 or 10 nanometers and is expected to be completed in the late 2020s.

TSMC's Second Plant in Japan

TSMC's second plant in Japan is expected to be even more advanced than the first, which is currently being built and will begin operation at the end of 2024. The new plant will produce cutting-edge semiconductors that are essential to modern technology, including smartphones and electric vehicles.

According to Bloomberg, TSMC is reviewing negotiations on subsidies from the Japanese government and investments from corporate customers. The specific terms are expected to be decided by the end of the year.

TSMC's Collaborations in Japan

TSMC has also announced that it is collaborating with the Sony Group to build a new facility in Japan. The collaboration aims to develop advanced packaging technology for semiconductors. This technology will enable the stacking of multiple chips in a single package, which will enhance the performance of electronic devices.

TSMC's Global Reach

As the world's largest foundry, TSMC has received "love calls" from many countries, including the United States and European countries, to produce semiconductors locally. The United States has offered TSMC an incentive of more than $50 billion if the company builds and produces on the mainland. Japan has also offered a similar subsidy.

With the global semiconductor shortage affecting various industries, TSMC's expansion in Japan is expected to help address the issue.