TSMC announces its plans to build its first chip factory in Japan

TSMC, the world’s largest semiconductor foundry manufacturer, announced at its quarterly earnings online meeting on the 14th that it will build a semiconductor manufacturing plant in Japan. Construction will begin next year and mass production in late 2024, the company executives said.

TSMC has 17 manufacturing plants in and outside Taiwan. Japan will become the third large overseas factory after China is operating and the United States is building.

A segment currently under a severe supply shortage due to robust demand from automakers and tech companies. But production from the plant is only likely to begin by late 2024.

The company and Taiwan in general have become central in efforts to resolve a pandemic-induced global chip shortage, which has forced automakers to cut production and hurt manufacturers of smartphones, laptops and consumer appliances.

TSMC is working closely with our customers to plan our capacity and investing in leading edge and speciality technologies to support their demand,” told an online earnings briefing, after the company posted higher-than-expected profits in the third quarter.

He said the expansion plan in Japan was pending approval from the company’s board and declined to disclose details such as expenditure and capacity.

Earlier this year, TSMC pledged to spend $100 billion over three years on developing new technologies and facilities. The company is also building a $12 billion chip factory in Arizona and expanding production capacity in Nanjing, China. The company didn’t disclose the cost of the new Japan plant but said it would be on top of the $100 billion pledge.

TSMC said the new factory would focus on less advanced chips, which are commonly used in autos and in components like sensors. Japan’s Sony Group Corp. , which supplies Apple Inc. iPhones with image sensors used in cameras, will take a share in the new plant, according to a person familiar with the matter. TSMC declined to comment.

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