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Japan media sees Taiwan TSMC factory plans as a measure of success

Japan government report had predicted demise of local chip sector by 2030

Japan's media welcome TSMC's planned chip factory. 

Japan's media welcome TSMC's planned chip factory.  (CNA photo)

TAIPEI (Taiwan News) — Plans by Taiwan Semiconductor Manufacturing Co. (TSMC) to build a factory in Japan amounted to success for the Japanese chip sector in 2021, reports said Thursday (Dec. 17).

TSMC has paired with Sony Semiconductor Solutions Corporation to start constructing a US$7 billion (NT$194.22 billion) plant in Kumamoto next year, with production to launch in 2024. If Japan’s semiconductor sector booked any progress this year, it was the success in attracting TSMC to invest in the country, the Chinese-language version of Nikkei reported.

A government report published in June predicted that Japan’s semiconductor business would shrink to zero by 2030. After the document sounded a warning about the future, TSMC moved in to help the country, the Liberty Times reported.

However, Nikkei pointed out the world’s largest contract chipmaker would be making 20-nanometer semiconductors for smartphones and cars in Japan, while the more advanced 5-nm products would be reserved for its plant in the United States.

Updated : 2022-05-29 10:56 GMT+08:00