TSMC, the Taiwanese chip manufacturer, revealed its intention to construct a second plant in Japan, set to be operational by the conclusion of 2027. This move, supported by the Tokyo government, increases TSMC's overall investment in its Japanese venture to over $20 billion. In 2021, Taiwan Semiconductor Manufacturing Co had initially announced the construction of a $7 billion chip facility in Kyushu's Kumamoto region in southern Japan.
TSMC recently announced that the first Japanese factory, scheduled to open in February with volume production in the fourth quarter, is being followed by considerations for 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 construct a second fabrication plant (fab) in response to increasing customer demand.
Construction for the second fab is slated to commence by the end of this year. With both factories in operation, the site's total monthly capacity is anticipated to exceed 100,000 12-inch wafers, catering to applications in automotive, industrial, consumer, and high-performance computing. TSMC 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%.