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Taiwan’s TSMC to build 2nd chip fab in Japan

Second Kumamoto fab to start construction at end of 2024, come online by end of 2027

TSMC. (Reuters photo)

TSMC. (Reuters photo)

TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) said Tuesday (Feb. 6) it will construct a second fab in Kumamoto Prefecture, Japan.

TSMC, along with Sony Semiconductor Solutions Corporation (SSS), Denso, and Toyota, will further invest in Japan Advanced Semiconductor Manufacturing (JASM), the Taiwanese chipmaker’s majority-owned subsidiary, to build the second plant, according to the company.

Together with JASM’s first fab, which is scheduled to come online this year, the overall investment in JASM will be upwards of US$20 billion (NT$627 billion) with strong support from the Japanese government.

The second fab is slated to start construction at the end of 2024 and begin operations by the end of 2027. The increased scale of production is expected to improve overall cost structure and supply chain efficiency for JASM, TSMC said.

TSMC’s two Japanese fabs will have a total production capacity of more than 100,000 12-inch wafers a month. They will be able to manufacture 40, 22/28, 12/16, and 6/7 nanometer process technologies for automotive, industrial, consumer, and HPC-related applications.

The two facilities are expected to create more than 3,400 high-tech jobs. Following the new investment, TSMC will hold an 86.5% equity stake in JASM, followed by 6% for SSS, 5.5% for Denso, and 2% for Toyota.