TSMC to Build Chip Plant in Kumamoto with Sony, Denso

Tokyo, Oct. 12 (Jiji Press)--Taiwan Semiconductor Manufacturing Co. plans to build a chip plant in the southwestern Japan prefecture of Kumamoto in a joint project with Sony Group Corp. <6758> and Denso Corp. <6902>, sources have said. Investment in the project will amount to some 800 billion yen, according to the sources. The Japanese government is considering putting up half of the costs as it aims to attract semiconductor businesses, an important sector from the perspective of economic security. The plant, expected to hire some 2,000 workers, will be built near an image sensor plant of Sony Group, a large customer of TSMC, in Kikuyo, Kumamoto. Sony Group plans to acquire land for the TSMC plant, which is expected to go into operation within a few years. With the participation of Denso, a major automotive parts maker belonging to Toyota Motor Corp.'s <7203> group, in the project, the Taiwanese contract chipmaker can also secure demand from the Toyota group. TSMC is expected to make a formal decision on the project soon. The planned assistance from the Japanese government is believed to have enticed the company. Facing an urgent need to strengthen semiconductor supply chains amid worsening chip shortages, Japan, the United States, Europe and others are vying to attract chip production bases. TSMC last year announced a plan to build a plant in the U.S. state of Arizona. The ruling Liberal Democratic Party will draft a national strategy on semiconductors for the next 10 years, LDP Secretary-General Akira Amari, who leads the party's semiconductor strategy, told Jiji Press last month. On Monday, Prime Minister Fumio Kishida told parliament that the government will work harder to have chipmaking bases built in Japan. He created the post of minister for economic security when he launched his cabinet last week. END