TSMC to build new fab in Japan

TMSC, the world’s No. 1 foundry company based in Taiwan, announced on Thursday that it will build a new fab in Japan. The company aims to break ground next year and start mass production at the end of 2024.

“We have received a strong commitment to supporting these projects from both our customers and the Japanese government,” said a member of TSMC during an earnings call for the third quarter. “Construction will begin after the approval of the board of directors.” It was reported that the company will build the new fab in Kumamoto where Sony is building an image sensor plant. This fab will utilize 22, 28-nanometer technology for semiconductor wafer fabrication.

According to the Nikkei, about 8.5 trillion won will be invested in total to build the new factory, 50 percent of which will be provided by the Japanese government. Sony and Denso among others are also investing in the project. Japan’s strategy is to ensure the stable supply of semiconductors, which have been low in supply, by hosting TSMC’s fab.

“The Japanese government aims to build a system of stable semiconductor manufacturing and supply chain in terms of its economic security,” said a source from the semiconductor industry regarding the project.

During the earnings call, TMSC announced that it recorded 17.6521 trillion won in sales and 6.6 trillion won in operating profit for the third quarter. Both figures are about 15 percent higher than the same period last year. Previously, TSMC announced a plan to build an advanced five-nanometer foundry line in the U.S. by investing 12 billion dollars. Reuters also reported that the company is considering building a total of six fabs in the U.S., including a three-nanometer fab.


Dong-Il Seo dong@donga.com