TSMC Reviews Additional Production Line in Japan... Potential for Advanced Semiconductor Manufacturing if Expanded

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Taiwan's TSMC, the world's largest foundry (semiconductor contract manufacturer), is reportedly considering expanding its production facilities in Japan, according to multiple sources cited by the Wall Street Journal (WSJ) on the 19th (local time).

TSMC is currently constructing a semiconductor factory in Kumamoto, Kyushu, Japan. This plant is expected to begin operations by the end of 2024, producing 12-nanometer (nm; 1 nm = one billionth of a meter) level semiconductors used in automobiles and sensors. WSJ, citing sources, reported that if TSMC expands the Kyushu plant, advanced semiconductors using fine processes will be produced.

The reason TSMC aims to expand production capacity in Japan appears to be to diversify Taiwan's geopolitical risks, including threats of military force from China. Additionally, the Japanese government's active provision of substantial subsidies is cited as a background for considering the expansion of the Japanese plant.

The Japanese government has decided to provide subsidies amounting to up to 4.5 trillion won for the TSMC plant, which will involve construction costs exceeding 10 trillion won, citing the rebuilding of the domestic semiconductor industry and economic security as reasons. It is reported that the Japanese government has already expressed willingness to support TSMC's plant expansion.

From TSMC's perspective, although there are negative factors such as industrial power supply issues and earthquake risks when establishing a semiconductor plant in Japan, sources explained that they judged these could be overcome with the Japanese government's support.

In addition to Japan, TSMC is currently constructing a semiconductor plant in Arizona, USA.

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