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Global Times: TSMC Considering Building a Second Factory in Japan

Global Times recently reported that the Japanese government actively invited TSMC (Taiwan Semiconductor Manufacturing Company) to expand its manufacturing capacity in Japan and introduce EUV process. The TSMC CEO confirmed for the first time at a press conference that TSMC is indeed considering building a second factory in Japan. TSMC is currently building a fab with special process technology in Japan, which will use 12/16nm and 22/28nm process technology, and plans to enter mass production by the end of 2024. Though the first factory is still under construction, TSMC plans to build a second fab at the same time, as long as customer demand and the level of government support make sense. According to previous Japanese media reports, TSMC’s first factory is being constructed in Kumamoto Prefecture, Japan. The Japanese government had previously decided to subsidize nearly half of the 1 trillion yen investment required by TSMC to build the factory. In response to foreign government invitations, TSMC is promoting the construction of factories overseas. In last December, TSMC announced that it would increase its planned investment of US$12 billion to US$40 to build two factories in Phoenix, Arizona. 4nm and 3nm chips will be put into production in 2024 and 2026. That represents TSMC’s largest investment outside of Taiwan and one of the largest foreign direct investments in U.S. history.

Source: Global Times, January 12, 2023