TSMC Unveils Chip Plant Project in Japan for Output from 2024

Taipei, Oct. 14 (Jiji Press)--Taiwan Semiconductor Manufacturing Co. said Thursday it will build its first chip production base in Japan, aiming to start its operations in 2024. C. C. Wei, CEO of the world's largest contract manufacturer of semiconductor chips, said construction of the plant will begin in 2022. The company did not give out details of the project, but the plant is expected to be built in the southwestern Japan prefecture of Kumamoto in a joint project with Sony Group Corp. <6758> and Denso Corp. <6902>. The total cost of the project will likely amount to some 800 billion yen, with the Japanese government considering paying half the expense. The project has won pledges of support from customers and the Japanese government, Wei said. Sources have said that the new plant will be built near an image sensor plant of Sony Group, a large customer of TSMC, in the town of Kikuyo. The participation of Denso, a major automotive parts maker belonging to the group of Toyota Motor Corp. <7203>, in the project will help TSMC secure demand from the Toyota group. At the new plant, TSMC is expected to manufacturer logic semiconductors with a circuit width of 22 to 28 nanometers that will mainly be used in image censors and for automobiles. TSMC has produced most of its chips in Taiwan, which allowed the company to secure high profitability. A global race to attract semiconductor production bases has intensified, however, as the U.S.-China conflict reminded people of the importance of chips in terms of economic security. Last year, TSMC decided to build a plant in the U.S. state of Arizona, in response to a request from the U.S. government. The company will be able to secure a connection with highly skilled workers and fulfill customer needs by expanding its production bases globally, Wei said. It is also looking at building a production base in Germany. END