DENSO to take minority stake in TSMC and Sony fab
TSMC, Sony Semiconductor Solutions Corporation (SSS) and DENSO Corporation announces that DENSO will take a minority stake in Japan Advanced Semiconductor Manufacturing (JASM), TSMC’s majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan.
DENSO will make a USD 350 million investment in JASM and hold a more than 10% equity stake in the Japanese manufacturing subsidiary, a press release reads. The closing of the transaction between JASM and DENSO is still subject to customary closing conditions.
The construction of JASM’s fab in Japan is scheduled to begin in 2022 with production expected to start by the end of 2024. To support market demand, TSMC says it will also will also enhance JASM’s capabilities with 12/16 nanometer FinFET process technology in addition to the previously announced 22/28 nanometer process and increase monthly production capacity to 55,000 12-inch wafers.
With the additional capacity, the total capital investment for JASM’s Kumamoto fab is estimated to be approximately USD 8.6 billion – with support from the Japanese government. The fab is expected to directly create about 1,700 jobs.