TSMC Begins Construction of Semiconductor Plant in Kumamoto, Japan... Aiming for Mass Production by Late 2024

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Taiwanese foundry (semiconductor contract manufacturing) company TSMC will begin construction of a semiconductor factory in Kumamoto Prefecture, Japan, on the 21st.

According to the Nihon Keizai Shimbun and others on the 20th, JASM, a subsidiary of TSMC, held an agreement signing ceremony with Kikuyo Town in Kumamoto Prefecture, the planned site for the factory construction, and announced the groundbreaking plan on the 21st. TSMC, together with Japan's Sony, will jointly invest about 1 trillion yen (approximately 9.6 trillion won) to build the factory and plans to start mass production in December 2024.

TSMC announced last November that the factory will produce 45,000 12-inch wafers per month. The global automotive parts company Japan Denso also invested in the subsidiary jointly established by TSMC and Sony. The total employment at this factory will be 1,700 people, with TSMC sending about 320 employees to Japan, and the remaining approximately 1,300 will be dispatched by Sony or secured through new hires.

The semiconductors produced at this factory are expected to be primarily supplied to Japanese automobile companies such as Sony and Toyota. As securing semiconductors becomes increasingly important for the automotive industry amid the semiconductor supply shortage, Japanese automakers are expected to secure a stable semiconductor supply chain domestically. Sony is also expected to prioritize securing image sensors used in camera products produced at this factory.

The Japanese government has been making efforts to rebuild its semiconductor industry since last year and has shown great interest in attracting the TSMC factory. The Japanese government plans to support TSMC with 400 billion yen for building the semiconductor factory in Kumamoto.

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