Taiwan Semiconductor Manufacturing Company (TSMC) has announced that it has taken a bold step in the global semiconductor industry by opening its first dedicated fab facility in Kumamoto, Kyushu, Japan, on the island of Kyushu.
As part of this milestone, the Japanese government has further announced its decision to provide TSMC with $4.85 billion in subsidies to support the construction of a second fab in Kumamoto, bringing the total subsidies for the two fabs to $8 billion. With this new infrastructure, Japan is now positioned to be a key partner in TSMC’s overall global growth strategy.
The fabs in Kumamoto are operated by a joint venture known as Japan Advanced Semiconductor Manufacturing (JASM), in which TSMC is the majority owner and where Sony, Denso, and Toyota hold equity stakes of approximately 86.5%, 6.0%, 5.5%, and 2.0%, respectively.
The first fab, known as Kumamoto 1, had an initial cost of $8.6 billion, with a subsidy of $3.2 billion from the Japanese government. Kumanto 1 is designed for a monthly production capacity of 40,000 to 50,000 wafers (wpm). It focuses primarily on 22/28nm wafer processes, with some 12/16nm capabilities expected to begin in the fourth quarter.
Kumamoto 2, slated to begin operations with a 6nm process in 2027, further expands TSMC’s footprint in Japan. Together, the combined production capacity of both fabs is anticipated to reach 100,000 semiconductor wafers per month, thereby enhancing chip supply resilience for Japan and the global market.
Beyond fabs, TSMC’s establishment of a 3DIC research center in Ibaraki and further plans for an advanced packaging plant in Japan highlight its comprehensive approach to solidifying its presence in the country’s semiconductor chip manufacturing landscape.
Meanwhile, Japan’s concerted efforts to develop semiconductor manufacturing hubs in Kyushu, Tohoku, and Hokkaido, focusing on advancing technologies such as the 2nm process, signal a promising future for the semiconductor manufacturing industry. Collaborations with companies like Rapidus further underscore Japan’s commitment to technological advancement and innovation in wafer production.
TSMC’s Japanese expansion is anticipated to strengthen the global semiconductor industry supply chain further and foster increased collaboration and innovation within the Japanese semiconductor industry. With significant investments and strategic partnerships, TSMC is poised to play a pivotal role in shaping the future of semiconductor manufacturing in Japan and beyond.
Source/Photo Credit: JASM/TMSC
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