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TSMC to open its second Japanese plant in 2027

Taiwanese chipmaker TSMC will start construction of a new $13bn fab in Kumamoto, Japan, as it continues to off-shore its manufacturing base.

The firm announced plans to build its first USD 7 billion chip plant in the southern Japanese city in 2021. This facility is due to open this month. Now, TSMC has confirmed a second fab to bring total investment in its Japan venture to more than USD 20 billion – with the support of the Tokyo government.

The second fab will begin construction by the end of this year, with completion scheduled for 2027. TSMC expects its total monthly capacity to hit more than 100,000 12-inch wafers when the two plants are up and running. The chips will be used for automotive, industrial, consumer and advanced computing applications.

TSMC is currently building fabs in different parts of the world, but not all projects are going smoothly. There have been numerous delays to its Arizona site, for example. By contrast, work in Japan is going well. And reporting by Reuters suggests that this second facility is a vote of confidence by TSMC in Japanese government and workers.

Construction of the new site will be overseen by TSMC's Japanese subsidiary, which is part owned by Sony Group (6%), auto parts maker Denso (5.5%) and carmaker Toyota (2%).


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June 12 2024 9:18 am V22.4.54-1