TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Company (TSMC) is planning to increase its investment in its first chip fab in Japan after the addition of auto parts maker Denso as an investor was announced on Tuesday (Feb. 15).
The chip facility will be built in Kumamoto Prefecture through a joint-venture between TSMC, Sony Semiconductor Solutions Corporation (SSS), and Denso. TSMC will be the majority stakeholder in the joint venture, called Japan Advanced Semiconductor Manufacturing (JASM), while SSS will have a stake of no more than 20% with its previously announced US$500 million (NT$13.93 billion) investment.
TSMC said in a press release that Denso will make an equity investment of US$350 million, giving it a more than 10% stake in JASM.
The Taiwanese chipmaker said that it now intends to add an additional production line for 12 and 16 nanometer chips at the Kumamoto plant, in addition to the originally planned 22 and 28 nm processes. The new fab will also have an increased monthly capacity of 55,000 12-inch wafers, up from the previously planned 45,000.
Total capital expenditure for the facility had previously been estimated at around US$7 billion, but will now be approximately US$8.6 billion, TSMC said. Construction is set to begin this year, with commercial production slated to begin by the end of 2024.
The Kumamoto plant is expected to produce chips used in image sensors and microcontrollers. The fab should create around 1,700 jobs, according to TSMC.
“JASM is not only an opportunity for TSMC to support growing market demand for specialty technologies, it enables us to leverage Japan’s top-notch semiconductor talent and contribute to the growth of the global semiconductor ecosystem,” said TSMC CEO CC Wei (魏哲家).
“Semiconductors are becoming increasingly important in the automotive industry as mobility technologies evolve, including driving and electrification,” said Desnos Koji Arima, president and CEO of Denso. “Through this partnership, we contribute to the stable supply of semiconductors over the medium to long term and thus to the automotive industry.”