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Taiwan Semiconductor Manufacturing Co., Ltd., the world’s largest contract chipmaker, held an opening ceremony for its first factory in Japan on Saturday, with further investment planned to build a second factory.
The factory, built in the town of Kikuyo in southwestern Kumamoto Prefecture, is scheduled to begin mass production of mature technology semiconductors, including 12-nanometer chips used in automobiles and industrial equipment, in the October-December period of this year.
A photo taken on February 24, 2024 shows Taiwan Semiconductor Manufacturing’s first factory in Japan, built in the town of Kikuyo in southwestern Kumamoto Prefecture. (Joint)
The $8.6 billion factory is operated by subsidiary Japan Advanced Semiconductor Manufacturing, with Sony Group and Denso, a major Japanese auto parts maker, each holding minority stakes. The Japanese government is providing up to $476 billion ($3.2 billion) in subsidies.
Attracting semiconductor manufacturers to new factories is part of the Japanese government’s efforts to revitalize Japan’s once-mighty chip sector and strengthen its supply chain as demand for semiconductors continues to rise in every corner of the digitalized world.
The country’s semiconductor companies held more than 50% of the global market share in the 1980s, but began to lose competitiveness amid intense trade friction with the United States.
Taiwanese companies are also building factories in the U.S. state of Arizona and Dresden, Germany, but are considering diversifying their production sites due to risks posed by tensions between Taiwan and China, which considers the democratic island its own territory. is progressing.
The semiconductor giant announced earlier this month that it would build a second factory in Kumamoto, increasing total investment in its Japanese operations to more than $20 billion.
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