Zinger Key Points
- Taiwan Semiconductor's Japan plant to start production in 2024 with Sony and Denso as first customers.
- Second Kumamoto plant to produce advanced 6nm and 7nm chips by 2027.
Taiwan Semiconductor Manufacturing Co’s TSM debut plant in Kumamoto, Japan, will start commercializing by the end of 2024.
Sony Group Corp SONY and Denso Corp DNZOF DNZOY will be the Taiwanese contract chipmaker’s initial customers, Technode cited JASM (Taiwan Semiconductor’s Japanese subsidiary) President Yuichi Horita from a Taiwanese media outlet.
Horita expects Taiwan Semiconductor’s production line in Japan to align with the quality of those in Taiwan.
The first Kumamoto plant focuses on 22 nm,28 nm, 12 nm, and 16nm processes, while the second will produce 6 nm and 7nm process chips, as planned.
Also Read: Sony Semiconductor Hits 20 Billion Image Sensor Shipments, Plans Expansion
Construction of the second Kumamoto plant will likely begin in the first quarter of 2025, with mass production scheduled by the end of 2027.
The combined monthly production capacity of the two plants will likely exceed 100,000 wafers.
The Japanese government earmarked over $64.9 billion to consolidate its semiconductor and artificial intelligence (AI) positions, taking a cue from the U.S. and China. Taiwan Semiconductor’s Arizona fab, worth $20 billion, will produce 4-nanometer chips by 2025.
Currently, 92% of the most advanced chips are made in Taiwan.
Japan’s semiconductor package totals over 10 trillion yen and aims to drive public and private investment of over 50 trillion yen by fiscal 2030.
Taiwan Semiconductor is eyeing a second facility in Japan’s Kumamoto, following its initial $8.6 billion wafer factory in the region. The company plans to invest $13.5 billion in the project.
The chipmaker is also plotting a third high-tech chip production facility worth $20 billion in Kumamoto to manufacture 3 nm chips.
Taiwan Semiconductor chair and CEO C.C. Wei expects advanced robots and AI-powered drones to be key growth drivers.
Taiwan Semiconductor stock surged 92% year-to-date.
Investors can gain exposure to the semiconductor sector through VanEck Semiconductor ETF SMH and iShares Semiconductor ETF SOXX.
Price Action: TSM stock closed higher by 1.32% to $197.21 on Friday.
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