TSMC Starts Mass Chip Production In Japan

Taiwan Semiconductor Manufacturing Co. (TSMC) announced on Friday that it has begun mass production at its first factory in Japan, located in Kumamoto Prefecture.

TSMC plans to build a second factory adjacent to the first plant to produce more advanced 6-nanometer chips. I Photo: Taiwan Semiconductor Manufacturing Co.

The facility manufactures logic chips using 12 to 28-nanometer process technologies for customers such as Sony Group Corp. and auto parts maker Denso Corp., Kyodo News reported.

TSMC, the world’s largest contract chipmaker, plans to build a second factory adjacent to the first plant to produce more advanced 6-nanometer chips. Construction is scheduled to begin by March 2025, with operations expected to commence by the end of 2027.

The Japanese government has pledged over 1 trillion yen ($6.3 billion) in subsidies to support TSMC, viewing domestic chip production as essential to economic security.

The move is part of Japan's strategy to reduce dependence on Taiwan, a major supplier, amidst rising geopolitical tensions involving China and the U.S. over the self-governed island.

Kumamoto Governor Takashi Kimura has urged TSMC to consider establishing a third factory in the prefecture. During his visit to TSMC's headquarters in Taiwan this August, he emphasized the region's readiness to accommodate further expansion.