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TSMC is considering building a second chip plant in Japan with an expected investment of more than one trillion yen, sources said

Update time : 2023-02-27 16:52:13

February 24, Japan's Nikkan Kogyo Shimbun reported today that TSMC plans to build a second chip manufacturing plant in Kikuyo, Kumamoto Prefecture, Japan, with an investment expected to exceed 1 trillion yen (about $7.4 billion).

TSMC's first factory in Kumamoto is now under construction, with production targeted for 2024. The plant is operated by Japan Advanced Semiconductor Manufacturing (JASM), a Kumamoto foundry services subsidiary, with investments from Sony's Semiconductor Solutions and Toyota Motor Group Enterprises, Denso.
The new plant is said to be the same size or larger than the first one, and may introduce advanced 5-10nm processes (according to the plan, the Kumamoto plant, which is scheduled to start production at the end of 2024, will be responsible for the production of 22/28nm and 12/16nm chips with a monthly capacity of 55,000 wafers), and is expected to start operations after 2025. The company stressed the ability of the two plants to share human resources and equipment, and plans to decide on the details during 2023.
Reports indicate that TSMC appears to be in talks on issues such as government subsidies and customer investment, and will finalize details by the end of the year. The Japanese government has made ensuring a stable supply of semiconductors an important economic security issue.
Last year, TSMC invested about $7 billion in building a semiconductor plant in Kumamoto Prefecture along with Sony Group and others, while Japan decided to provide 476 billion yen about $3.5 billion in subsidies for the plant.
In addition, TSMC CEO Wei Zhejia also said at a financial results meeting in January that the company was considering building a second factory in Japan. But Sony said it has not discussed with TSMC in related matters.

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