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World’s largest chipmaker TSMC to build a second factory in Japan

World’s largest chipmaker TSMC to build a second factory in Japan

CNN
Wednesday, February 7, 2024 6:34 AM GMT

Chip giant Taiwan Semiconductor Manufacturing Company (TSMC) is upping its output in Japan as it continues to expand its global presence.

Chip giant Taiwan Semiconductor Manufacturing Company (TSMC) is upping its output in Japan as it continues to expand its global presence. The world’s largest chipmaker will build a second semiconductor fabrication plant, or fab, in the country in “response to rising customer demand,” TSMC said in a statement Tuesday. Japan Advanced Semiconductor Manufacturing (JASM), a subsidiary majority-owned by TSMC, plans to start construction by the end of 2024, it added. The facility is scheduled to be operational by the end of 2027. Together with JASM’s first plant, which is scheduled to begin operation this year, the overall investment in Japan will exceed $20 billion “with strong support from the Japanese government,” the statement said. Toyota Motor (TM) and Sony (SONY) have also invested in the venture. The plants will together create about 3,400 skilled jobs, according to TSMC. The increased production in Japan comes at a time when the chip maker is facing delays at its project in Arizona. The company had announced in 2022 that it would build a second semiconductor plant in the southwestern US state, adding to plans for an existing fab and raising its overall investment in Arizona from $12 billion to $40 billion.

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