TSMC to Establish Second Chip Manufacturing Facility in Japan

Taiwanese chip manufacturer TSMC has announced its plan to build a second plant in Japan, which is set to be operational by the end of 2027. The Tokyo government is supporting this move, which increases TSMC's investment in its Japanese venture to over $20 billion. Earlier in 2021, TSMC had announced the construction of a $7 billion chip facility in Kyushu's Kumamoto region in southern Japan.

TSMC recently revealed that the first Japanese factory, scheduled to open in February with volume production in the fourth quarter, will be followed by the construction of a second factory in the country. The world's largest contract chipmaker stated that its majority-owned unit, Japan Advanced Semiconductor Manufacturing in Kumamoto, will build a second fabrication plant (fab) in response to increasing customer demand.

Construction for the second fab is expected to begin by the end of this year. With both factories in operation, the site's total monthly capacity is expected to exceed 100,000 12-inch wafers, catering to automotive, industrial, consumer, and high-performance computing applications. TSMC has noted that the capacity plan may be adjusted based on customer demand. In this Japanese venture, TSMC holds an 86.5% stake, with Sony Group at 6%, Denso at 5.5%, and Toyota at 2%.