Taiwan’s TSMC inaugurates its first chip plant in Japan

Taiwan’s TSMC inaugurates its first chip plant in Japan

Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, held an official ceremony on Saturday to inaugurate its first semiconductor plant in Japan, as part of its global expansion strategy.

The plant, located in Kikuyo town, a suburb of Kumamoto, southwestern Japan, is operated by Japan Advanced Semiconductor Manufacturing (JASM), a subsidiary of TSMC. JASM will produce 28-nanometer chips for applications such as automotive, industrial, and consumer electronics. The plant is expected to start production later this year.

TSMC also announced earlier this month that it will build a second plant in Japan, with an investment of $10 billion, to produce 3-nanometer chips, which are more advanced and energy-efficient. The second plant, also in the Kumamoto region, is scheduled to start production in about three years.

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The two plants in Japan are part of TSMC’s plan to increase its production capacity and diversify its supply chain amid a global chip shortage that has affected various industries, especially the automotive sector. TSMC is also building a plant in the U.S. and has announced a plan to build one in Europe.
TSMC Chairman Mark Liu expressed his gratitude to the Japanese government, local community, and business partners for their support at the ceremony, which was also attended by TSMC founder Morris Chang. Liu said that TSMC and Japan share common values of innovation, quality, and reliability, and that the collaboration will benefit both sides.

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Japanese Prime Minister Fumio Kishida sent a congratulatory video message, calling the plant’s opening “a giant first step.” He emphasized Japan’s friendly relations with Taiwan and the importance of cutting-edge semiconductor technology. Japan has pledged more than 1 trillion yen ($7 billion) in government funding to encourage TSMC to invest in Japan.Japan Semiconductor Plant
Japan, which once dominated the global chip industry, has seen its market share decline in recent decades due to competition from South Korea, the U.S., and Europe, as well as from TSMC. Japan now relies heavily on chip imports and has been hit hard by the chip shortage. Japan has allocated about 5 trillion yen ($33 billion) to revive its chip industry and achieve self-sufficiency.

Morris Chang, founder of Taiwan Semiconductor Manufacturing Co. (TSMC)

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Some of Japan’s leading companies, such as Sony, Denso, and Toyota, are investing in TSMC’s Japan plant, with the Taiwanese company retaining an 86.5% ownership of JASM. Sony is a major customer of TSMC, as it uses TSMC’s chips for its PlayStation consoles and image sensors. Denso and Toyota are also seeking to secure chip supplies for their vehicles amid the chip crunch.

Source : yahoo finance

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