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Semiconductor manufacturing giant TSMC pushes development of second chip plant in Japan with new investor Toyota
- The world’s largest contract chip maker said Toyota will join as a new investor of its Japanese manufacturing subsidiary JASM
- TSMC’s new facility will be built close to its first plant in Kumamoto Prefecture on the southwestern island of Kyushu
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Taiwan Semiconductor Manufacturing Co (TSMC) is expanding its output in Japan with plans to build a second chip fabrication plant that marks a major victory for Prime Minister Fumio Kishida, as his government seeks to boost domestic production of integrated circuits.
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TSMC, the world’s largest contract chip maker, said that Toyota Motor Corp will be joining as a new investor of Japan Advanced Semiconductor Manufacturing (JASM), the Taiwanese firm’s majority-owned manufacturing subsidiary in Kumamoto Prefecture on the southwestern island of Kyushu.
The TSMC board on Tuesday approved an injection of no more than US$5.26 billion in JASM, though it was not immediately clear how those funds would be used.
The new facility will be close to the first TSMC plant in Kumamoto. TSMC said in a statement on Tuesday that it would be adding 6- and 7-nanometre process technologies, advancing semiconductor production in that campus.
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TSMC’s second fab in Japan is scheduled to start construction at the end of this year and begin operation by the end of 2027.
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Together with JASM’s first fab, the overall investment will exceed US$20 billion with “strong support from the Japanese government”, the Hsinchu, Taiwan-based company said.
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