TSMC Reveals Plans for Second Japanese Chip Plant, Bolstering $20 bn Investment

TSMC, the leading global chipmaker, has revealed its intention to construct a second plant in Japan, with operations slated to commence by the conclusion of 2027. This move will amplify TSMC’s investment in Japan to over $20 billion, supported by the Tokyo government.
TSMC for iPhonesThe initiative follows TSMC’s 2021 announcement to establish a $7 billion chip facility in Kumamoto, situated in Kyushu, southern Japan.

Last month, TSMC confirmed the imminent inauguration of its first Japanese factory in February, with volume production scheduled for the fourth quarter. Additionally, the company expressed contemplation regarding the construction of a secondary plant within the nation, Reuters news report said.

TSMC disclosed that its majority-owned subsidiary, Japan Advanced Semiconductor Manufacturing in Kumamoto, will spearhead the construction of the second fabrication plant (fab) in response to escalating customer demand.

Construction of the second fab is set to commence by the year’s end, with both facilities anticipated to collectively yield a monthly capacity exceeding 100,000 12-inch wafers. These wafers will cater to a spectrum of sectors, encompassing automotive, industrial, consumer, and high-performance computing applications.

TSMC underscored its flexibility, noting that the capacity plan could be adjusted in accordance with evolving customer requirements.

With an 86.5 percent stake in the Japanese venture, TSMC is the principal stakeholder, while Sony Group, auto parts manufacturer Denso, and carmaker Toyota hold the remaining shares.

This expansion aligns with Japan’s strategic ambition to fortify its chip manufacturing prowess and ensure a reliable chip supply amidst geopolitical tensions, particularly between the United States and China.

The decision to proceed with a second fab signifies TSMC’s confidence in Japan, characterized by the smooth execution of the first fab’s construction and the country’s conducive business environment, as reported by Reuters.

TSMC maintains that the majority of its manufacturing will remain in Taiwan, though the company continues to broaden its global manufacturing footprint in response to market demand.

Beyond Japan, TSMC’s investments include a $40 billion initiative to establish two fabs in Arizona, in alignment with Washington’s objectives to bolster U.S. chip production capacity. Additionally, the company is gearing up for its inaugural European factory in Germany, primarily servicing the automotive sector.