Taiwan Semiconductor Manufacturing (TSMC) intends to construct a second chip manufacturing facility in Japan in Kumamoto Prefecture’s southwest, with an estimated total expenditure of more than 1 trillion yen ($7.4 billion), according to unnamed sources in Nikkan Kogyo.
The publication said that the second factory for the Taiwanese business might make use of more sophisticated 5 nanometer or 10 nanometer manufacturing technologies when it is finished in the late 2020s. The first TSMC facility in Japan will open in Kumamoto by the end of 2024.
The article states that TSMC is allegedly in talks with potential investors and the government about government subsidies. By year’s end, specifics should be decided.
Governments from all over the globe, including the US and Japan, have courted TSMC, the most sophisticated chipmaker in the world, as they aim to increase domestic semiconductor output. For chipmakers to establish facilities in the US, Washington has provided more than $50 billion in incentives, and Japan is anticipated to pay comparable subsidies.
TSMC Arizona Facility is the Company’s Biggest International Plant After Taiwan
TSMC’s international expansion is growing at a rapid pace with major one being the Arizona facility. According to the Wall Street Journal, in addition to the $12 billion plant that TSMC has already committed to constructing in Phoenix, the company also plans to develop a second manufacturing facility in Arizona.
The second factory will be located north of Phoenix, according to people familiar with the plans who spoke to WSJ. Investment is projected to be similar to the $12 billion the corporation committed to in 2020.
The first factory was designed only for the mass production of 5nm chips. Nonetheless, it is getting ready to produce more advanced 4nm devices at the plant, according to the WSJ’s sources. It is predicted that the facility would start mass production in 2024.
The announcement of TSMC’s undisclosed plans follows efforts by the Biden administration to entice investments in American chip manufacturing by promising businesses billions in financial assistance to establish themselves in the nation. The initiatives seek to secure elements deemed essential to national security while thwarting China’s ambitions in the tech sector. The initiatives were stepped up after the chip shortages in late 2020 and early 2021 highlighted the significance of semiconductors in consumer electronics.
With alternative manufacturing facilities located across the world, TSMC hopes to lessen its reliance on Taiwan and maintain a steady supply of goods. It remains to be seen whether the TSMC choice would be successful.
Source: Bloomberg
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