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TSMC plans to build a chip factory in Japan

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TSMC, the largest semiconductor contract manufacturer, is considering building its first chip factory in Japan as Tokyo encourages manufacturers to expand semiconductor manufacturing in the country.

TSMC is a key partner of Sony and other Japanese chip makers. Four sources told Nikkei Asia that the Taiwanese company is evaluating plans to build a plant in Kumamoto Prefecture in western Japan. The facility will be located next to one of Sony’s factories and will help meet the growing demand for image sensors, automotive microcontrollers and other chips, they said.

“TSMC is considering a proposal from the Japanese government to build an advanced chip factory in Japan, but it has not yet developed a plan or made any commitments,” says one source.

According to the preliminary plan, the Kumamoto plant will be designed for 300mm plates. It is planned to install equipment at the enterprise that allows switching between various technological processes, including 28-nanometer and 16-nanometer.

In 2020, Japanese customers provided 4.7% of TSMC’s revenue.

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