© TSMC / Sony Business | November 09, 2021
TSMC to build new fab in Japan together with Sony
TSMC will establish a subsidiary, Japan Advanced Semiconductor Manufacturing (JASM), in Kumamoto, Japan to provide foundry service with initial technology of 22/28-nanometer processes to address the global market demand for specialty technologies, with Sony Semiconductor Solutions Corporation (SSS) participating as a minority shareholder.
Construction of the new fab in Japan is currently scheduled to begin sometime in 2022 year with production targeted to start by the end of 2024. The companies disclose in a joint press release that fab is expected to directly create about 1,500 high-tech professional jobs and to have a monthly production capacity of 45,000 12-inch wafers. The initial capital expenditure is estimated to be approximately USD 7 billion, with strong support from the Japanese government. Under the definitive agreements reached between the companies, SSS plans to make an equity investment in JASM of approximately USD 0.5 billion, which will represent a less than 20% equity stake in JASM. “The digital transformation of more and more aspects of human lives is creating incredible opportunities for our customers, and they rely on our specialty processes that bridge digital life and real life,” says Dr. CC Wei, Chief Executive Officer of TSMC in the press release. “We are pleased to have the support of a leading player and our long-time customer, Sony, to supply the market with an all-new fab in Japan, and also are excited at the opportunity to bring more Japanese talent into TSMC’s global family.” “While the global semiconductor shortage is expected to be prolonged, we expect partnership with TSMC to contribute to securing a stable supply of logic wafers, not only for us but also for the overall industry. We believe that further strengthening and deepening our partnership with TSMC, which has the world’s leading semiconductor production technology, is extremely meaningful for the Sony Group,” adds Terushi Shimizu, President and CEO of Sony Semiconductor Solutions Corporation.
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