Taiwan chip giant TSMC announced plans to build a new factory in Japan to meet long-term demand for chips.
TSMC, the world’s largest contract chipmaker and a key supplier to Apple, aims to set up a chip plant in Japan that will use older chipmaking technology, a segment currently under a severe supply shortage due to robust demand from automakers and tech companies. Production from the plant is only likely to begin by late 2024.

“TSMC is working with our customers to plan our capacity and investing in leading edge and speciality technologies to support their demand,” Chief Executive Officer C. C. Wei told an online earnings briefing, after the company posted higher-than-expected profits in the third quarter.

TSMC posted 13.8 percent increase in net profit to T$156.3 billion ($5.56 billion) in July-September.

Chips made by TSMC (Taiwan Semiconductor Manufacturing Co) are used in everything from high-end smartphones like Apple’s newly unveiled 5G iPhone 13, to artificial intelligence, cars and a wide variety of lower-end consumer goods.

The company lifted its revenue growth forecast for 2021 to about 24 percent, versus an earlier forecast of above 20 percent, citing an “industry megatrend” of strong chip demand.

TSMC’s revenue for the quarter climbed 22.6 percent to $14.88 billion.

For the quarter ending in December, TSMC forecast revenue of $15.4 billion to $15.7 billion, compared with $12.68 billion in the same period a year earlier.