[XGNews]: TSMC’s first chip factory in Japan will open in 2023, the source said

The following is the [XGNews]: TSMC’s first chip factory in Japan will open in 2023, the source said recommended by xgapn.com.

According to reports, people familiar with the matter said today that TSMC’s first chip factory in Japan will be put into operation as early as 2023.

The planned plant, located in Kumamoto on Kyushu Island in western Japan, will be promoted in two phases, people familiar with the matter said. TSMC’s board is expected to decide on the investment this quarter.

Once both phases are completed and put into production, the new plant will use 28nm technology to produce about 40000 wafers per month. At present, 28nm technology is widely used in many types of chips, including image processors and microcontroller units for automotive applications and consumer electronics.

The plant is expected to be mainly used to make image sensors for Sony, TSMC’s largest Japanese customer. TSMC is open to working with Sony, which will give Sony more say in running factories and negotiating with the Japanese government, people familiar with the matter said.

People familiar with the matter also pointed out that TSMC’s decision is still subject to a number of factors, including the incentive and support of the Japanese government, as well as the commitment of local suppliers to build chip related infrastructure and develop the supply chain.

Sony declined to comment. TSMC reiterated that it told investors on July 15 that it was conducting due diligence on a Japanese wafer factory.

At that time, TSMC CEO Wei Zhe Jia said in the second quarter earnings conference call that TSMC was preparing to build a chip manufacturing plant in Japan and was currently conducting due diligence.

Liu Deyin, chairman of TSMC, stressed at that time that there was no final decision on building a factory in Japan. The end result will depend on customer demand, operational efficiency and cost economy, he said.

It is estimated that TSMC’s investment in Kumamoto plant may be far lower than TSMC’s investment in Arizona (US $12 billion), which will use more advanced 5nm technology. In 2020, American customers account for more than 60% of TSMC’s revenue, while Japanese customers account for less than 5%.

TSMC’s main customers include apple, Google and Facebook. In addition, TSMC is expanding its plant in Nanjing. Mr Liu has said TSMC needs to expand its global production footprint to remain competitive and serve customers.

Building a plant in Japan means that TSMC’s plant building strategy has undergone a major change.

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