TSMC plans to invest additionally in Japanese factories

In November last year, TSMC and Sony Semiconductor Solutions (SSS) jointly announced that they would establish a subsidiary, Japan Advanced Semiconductor Manufacturing Co., Ltd. (JASM), to provide foundry services in Kumamoto, Japan, initially providing Initial technology for 22/28nm process.

Nikkei reported that TSMC has decided to increase investment in its project to build its first factory in Japan to about 1 trillion yen (about 55.1 billion yuan), enabling it to power a variety of industries including self-driving cars. High-tech products produce chips. The project is jointly implemented by the Sony Group, and major auto parts supplier Denso will also participate.

It is reported that the initial investment initially approved by TSMC’s board of directors is US$7 billion, and mass production is scheduled to begin by the end of 2024. The Sony subsidiary will invest up to $500 million and will hold a less than 20 percent stake in TSMC's Japanese subsidiary.

JASM's fab in Japan is scheduled to begin construction in 2022, with production planned for late 2024. The fab is expected to directly create about 1,500 high-tech professional jobs with a monthly capacity of 45,000 12-inch wafers. With strong support from the Japanese government, the initial capital expenditure for the plant is about US$7 billion.

TSMC has been making a lot of contributions to the Japanese semiconductor ecosystem since it established the TSMC Japan subsidiary in 1997, and TSMC also established a Japanese design center in 2019. It is expected that the establishment of this new factory will promote The Asian semiconductor ecosystem goes one step further.

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