Science Technology

Invest trillions in TSMC or build a second factory in Japan

It is reported that TSMC plans to build its second chip manufacturing plant in the southwest of Kumamoto Prefecture, Japan, with an estimated total investment of more than 1 trillion yen (about 51.4 billion yuan). At present, TSMC is negotiating on government subsidies and customer investment, and the details are expected to be determined before the end of the year.
The report also said that TSMC’s second factory is expected to be completed by the end of the 1920s, and may adopt a more advanced 5nm or 10nm manufacturing process. TSMC’s first plant in Japan, also located in Kumamoto, is expected to be completed in September this year and put into operation by the end of 2024.
It is widely believed in the industry that TSMC’s decision will help Japan revive its advanced semiconductor manufacturing industry, which is also considered to be the key condition for the new digital technology to promote Japan’s future economic growth.
On December 9 last year, TSMC disclosed that it had no specific new investment plan in Japan, but stressed that the company would not rule out the possibility of building a second wafer factory in Japan. Shortly after that, Yasutoshi Nishimura, the Minister of Economy and Industry of Japan, said that we very much welcome TSMC to build a second factory in Japan, and Japan will do its best to attract foreign semiconductor suppliers to invest locally.
TSMC is building its first chip factory in Japan in Kumamoto, Kyushu, Japan, and is expected to start producing 12 nm and 16 nm semiconductors next year. The Japanese government provided TSMC with a subsidy of 476 billion yen, about half of the expected cost of the plant. Sony Group Corp and Denso Corp, an auto parts manufacturer, are also investors in the factory. In the future, Denso Corp will use the chips produced by the factory.