TSMC Announces Chip Plant Debut In Japan

Contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd TSM gears up for chip plant debut in Japan to counter the global semiconductor chip crisis, Nikkei Asia reports.
TSMC CEO C.C. Wei acknowledged support from its customers and the Japanese government to proceed with the investment, subject to its board approval.
The plant will focus on 22-nm and 28-nm specialty technology that applies from image sensors to microcontrollers.
The construction of the factory will start in 2022, with mass production in 2024.
TSMC admitted that the project is beyond the previously announced three-year, $100 billion investment plans. TSMC is also open to joint ventures with other companies or its customers regarding the project.
Wei also admitted that the chip industry is experiencing a "short-term imbalance due to disruption in the supply chain, brought on by COVID-19."
Wei talked about possible "inventory correction."
"We are seeing demand go soft in the smartphone and PC markets ... but TSMC's capacity will remain tight in 2021 and throughout 2022," Wei said.
TSMC is already building its most advanced chip facility in Arizona and pondering a plant in Germany. It is also expanding capacity in China's Nanjing.
Price Action: TSM shares traded higher by 3.84% at $114.2 in the premarket session on the last check Thursday.