TSMC formally opens its $8.6bn Japanese foundry
Taiwanese chip maker TSMC has marked a milestone in its programme to re-locate manufacturing away from its home country - opening its new facility in the Kumamoto region of Kyushu, Japan.
The new plant is just the start. TSMC is now constructing a second Japanese facility in Kikuyo to make more advanced chips, and is reportedly eyeing a third and even a fourth. TSMC is also building a second factory in Arizona and has plans for a build in Germany.
The Kumamoto grand opening marks a significant milestone for TSMC's Japanese division (JASM), which was established in 2021 and started construction in Kumamoto in April 2022. The site is expected to deliver a production capacity of more than 100,000 12-inch wafers per month starting from 40, 22/28, 12/16 and 6/7 nanometer process technologies for automotive, industrial, consumer and HPC-related applications.
The Kikuyo plant will begin construction by the end of 2024 and begin operation by the end of the 2027 calendar year. The two fabs are expected to directly create more than 3,400 high-tech jobs.
TSMC's overall investment in JASM will exceed US20 billion with support from the Japanese government. The firm has made no secret of its admiration for Japanese processes and support. The government pledged more 40 percent of the costs of the new plant, which was built on time and on budget. By contrast the US project has been delayed multiple times thanks to regulatory and labour issues.
Of course, Japan does has numerous advantages over other locations. It is geographically close and is home to many critical chip suppliers.
