TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is considering expanding production in Japan, sources told The Wall Street Journal (WSJ).
They said the Japanese government has let TSMC know it is interested in seeing the world’s largest contract chipmaker expand production further than the current facility under construction in Kumamoto Prefecture. The Taiwanese chipmaker has not made any decisions yet and is looking into the possibility, per The WSJ.
Since the beginning of the pandemic, the world has been experiencing chip shortages in automotive as well as other important sectors. Meanwhile, Washington and its allies, including Tokyo have become increasingly worried about China’s semiconductor industry development.
Additionally, there are concerns about the concentration of advanced semiconductor manufacturing in Taiwan, a country Beijing has repeatedly threatened to illegally annex by force.
TSMC is building a fab in Kumamoto through a joint-venture called Japan Advanced Semiconductor Manufacturing Inc., between itself, Sony Semiconductor Solutions Corporation, and Denso. The project is expected to cost around US$8.6 billion (NT$277 billion), with the Japan government providing US$3.5 billion in subsidies for the project.
The plant will have two production lines, one that produces 12 and 16 nm chips, and another that manufactures 22 and 28 nm silicon to be used in image sensors and microcontrollers. The fab is slated to begin commercial production in December 2024.
If TSMC decides to further expand capacity, it would be looking to manufacture more advanced chips at the Kumamoto site, The WSJ cited the sources as saying. TSMC said the Kumamoto construction is proceeding as planned, but did not comment on further expansion.
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