Technology
Monday, February 26th, 2024 4:35 pm EDT
Key Points
- TSMC inaugurated its first chip plant in Japan to diversify its supply chains away from Taiwan amidst escalating U.S.-China trade tensions.
- As the world’s largest contract chip manufacturer with clients like Nvidia and Apple, TSMC has been sought after by various countries, including Europe and the U.S., to establish local operations.
- The chip fabrication plant, located in Kumamoto, will feature a cleanroom spanning about 45,000 square meters, with production expected to commence by the end of 2024. This move aims to strengthen Japan’s semiconductor industry, which currently lags behind leaders like TSMC and Samsung, with plans to create over 3,400 high-tech professional jobs and a total investment exceeding $20 billion.
Taiwan Semiconductor Manufacturing Company (TSMC) has inaugurated its first chip plant in Japan, marking a strategic move to diversify its supply chains amid escalating trade tensions between the U.S. and China. As the world’s leading contract chip manufacturer catering to clients like Nvidia and Apple, TSMC’s expansion into Japan aligns with global efforts to establish local semiconductor operations. The chip fabrication facility, situated in Kumamoto, features a cleanroom spanning approximately 45,000 square meters, crucial for chip production, with plans for production commencement by the end of 2024. Established by Japan Advanced Semiconductor Manufacturing Inc. (JASM), a company primarily owned by TSMC, construction of the plant began in April 2022, backed by support from the Japanese government, Sony Semiconductor Solutions, and Denso Corporation. Japan’s semiconductor industry aims to bridge a 10-year gap with leading chip manufacturers like TSMC and Samsung, as it intensifies efforts to bolster its presence in the global semiconductor market. In collaboration with Sony Semiconductor Solutions, Toyota, and Denso, TSMC announced additional investment into JASM to construct a second chip fabrication plant, aiming to commence operations by the end of 2027. With an anticipated creation of over 3,400 high-tech professional jobs, the Japanese government’s investment in JASM is expected to exceed $20 billion. TSMC’s Japanese facilities will focus on producing semiconductors for various sectors, including automotive, industrial, consumer electronics, and high-performance computing, further solidifying the company’s commitment to meeting global semiconductor demands. Additionally, TSMC is undertaking one of its largest overseas ventures with a $40 billion investment in Arizona, intending to construct two chip manufacturing plants to cater to the annual demand in the United States.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/02/26/tsmc-opens-new-plant-in-japan-as-it-diversifies-away-from-taiwan.html
