Introduction:
In a significant move, Taiwan Semiconductor Manufacturing Co. (TSMC) has officially announced its intention to construct a second semiconductor fabrication facility (fab) in Japan. Additionally, this new facility, operated by TSMC’s majority-owned subsidiary Japan Advanced Semiconductor Manufacturing (JASM), is set to propel Japan into the forefront of advanced semiconductor production. The fab will specialize in manufacturing chips on 6 nm and 7 nm-class process technologies, marking a crucial milestone for Japan’s semiconductor industry.
JASM’s Current Endeavors:
JASM is currently gearing up to inaugurate its first fab in Japan, scheduled for a formal opening on February 24.
Additionally, this initial facility has the capability to process up to 55,000 300-mm wafer starts per month, employing TSMC’s 40 nm, 28 nm, 22 nm, 16 nm, and 12 nm-class process technologies.
The primary purpose of this fab is to address the semiconductor needs of JASM’s minor investors, including major Japanese corporations such as Sony, Toyota, and Denso, as well as other automotive industry players.
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Expansion Plans and Technological Advancements:
The newly announced fab, capable of producing chips on 6 nm and 7 nm-class process technologies, will be strategically located adjacent to JASM’s upcoming fab in Kumamoto Prefecture, Japan.
This move is anticipated to increase the overall capacity of the site to over 100,000 300-mm wafer starts per month by the end of calendar 2027, according to TSMC.
This expansion aligns with TSMC’s commitment to meeting the growing demand for advanced semiconductor technologies.
Significance of the N6 and N7-capable Fab:
The introduction of the N6 and N7-capable fab in Japan signifies a crucial step in closing the technological gap between JASM and TSMC’s leading-edge fabs.
Moreover, adopting these advanced process technologies, the new fab will be capable of producing more sophisticated processors, placing Japan at the forefront of cutting-edge semiconductor production.
Investment and Ownership Structure:
To fund the construction of the new fab, the owners of JASM will make additional investments, with the total investments in the site expected to exceed $20 billion.
Additionally,TSMC emphasized the ‘strong support from the Japanese government’ in this venture, highlighting the collaborative nature of the project. Moreover,Under the new investment agreement, TSMC will hold the largest stake at 86.5%, followed by SSS at 6.0%, DENSO at 5.5%, and Toyota at 2.0%.
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Diversification of Applications:
The expanded production capacity of the JASM fabs will enable the production of chips for a wide range of applications, including automotive, industrial, consumer electronics, and high-performance computing (HPC). Moreover, this diversification aligns with the increasing demand for semiconductors across various industries and reinforces Japan’s position as a key player in the global semiconductor market.
Conclusion:
TSMC’s strategic expansion into Japan through the establishment of a second fab under JASM showcases a commitment to technological advancement and collaboration between industry leaders.
Moreover,the investment in advanced process technologies and the support from major Japanese corporations and the government positions Japan as a significant player in the evolving landscape of semiconductor manufacturing.
The implications of this move extend beyond national borders, influencing the global semiconductor supply chain and fostering innovation in key industries.
