TSMC Considers Kumamoto as Site for Japan's First Semiconductor Factory

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Taiwan's TSMC, the world's largest semiconductor foundry (contract manufacturing) company, is reportedly considering Kumamoto Prefecture as the site for its first factory in Japan. It appears that the Japanese government's plan to attract leading semiconductor companies to the country to overcome the semiconductor supply shortage is becoming a reality.

On the 11th, Nihon Keizai Shimbun reported, citing multiple sources, that TSMC is considering building a large-scale 300mm wafer factory in Kumamoto Prefecture, located in western Japan's Kyushu region. The new TSMC factory plans to introduce 16nm and 28nm technologies. While these are not the cutting-edge 5nm technologies, they are considered important technologies used in automobiles and smartphones.

TSMC responded to Nihon Keizai's request for confirmation by stating, "We cannot comment."

With TSMC's new semiconductor production plant, the semiconductor supply shortage in Japan is expected to ease somewhat.

Nihon Keizai stated, "The establishment of the TSMC factory will help meet the rapidly increasing demand for image sensors, automotive microcontrollers, and other semiconductors."

Earlier, as the global semiconductor supply shortage intensified, the Japanese government has been striving to attract global semiconductor companies such as TSMC to prevent supply disruptions. Since Japan's main industry is automobiles and semiconductors have a broad impact on computers and home appliances, the government plans to resolve the semiconductor supply shortage through this strategy.

Japan has declared plans to produce semiconductors domestically starting in 2025, which were previously dependent on overseas contract manufacturing, and has been actively courting leading semiconductor companies.

In response, TSMC announced in February that it would invest 18.6 billion yen to establish a research and development (R&D) base in Tsukuba City, Ibaraki Prefecture. The Japanese government will provide support matching the amount invested by TSMC. The fact that TSMC announced the establishment of a large-scale R&D base and shortly thereafter attracted production facilities is interpreted as a sign of the Japanese government's strong determination to secure the semiconductor industry.

This content was produced with the assistance of AI translation services.