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TSMC announces plans to build specialty technology fabs in Japan and Taiwan's Kaohsiung

Construction of Japan fab will start in 2022, production expected to begin by end of 2024

(Taiwan Semiconductor Manufacturing Co. photo)

(Taiwan Semiconductor Manufacturing Co. photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) and Sony Semiconductor Solutions Corp. (SSS) on Tuesday (Nov. 9) jointly announced that TSMC will set up a subsidiary — Japan Advanced Semiconductor Manufacturing, Inc. (JASM) — in Kumamoto to provide foundry services for 22/28-nanometer processes to address strong global demand for specialty technologies.

Construction of the fab will start in 2022, and production is expected to begin by the end of 2024, TSMC said. About 1,500 high-tech jobs will be created with the establishment of the facility, which will have a monthly production capacity of 45,000 12-inch wafers, the Taiwanese company added.

With strong support from the Japanese government, the initial capital expenditure is estimated to be approximately US$7 billion, TSMC said. According to the company, SSS plans to invest approximately US$0.5 billion, which represents a less than 20% equity stake in the fab.

“We are pleased to have the support of a leading player and our long-time customer, Sony, to supply the market with an all-new fab in Japan, and also are excited at the opportunity to bring more Japanese talent into TSMC’s global family,” said CEO C.C. Wei.

JASM adds to TSMC’s contribution to Japan’s semiconductor ecosystem since the establishment of its TSMC Japan subsidiary in 1997. In 2019, the Taiwanese semiconductor giant set up the Japan Design Center to serve its global customers.

Domestically, TSMC’s board on Tuesday approved renting a plot of land in Kaohsiung to build a fab, Kaohsiung Mayor Chen Chi-mai (陳其邁) said. TSMC has decided to establish a fab for 7nm and 28nm processes in the southern city in 2022, with mass production expected to begin in 2024, according to CNA.