TSMC studies building a second chip plant in Japan

Taiwan Semiconductor Manufacturing (TSMC), the world’s largest contract chipmaker, is considering building a second plant in Kumamoto Prefecture in southwestern Japan, in addition to the one currently being built there, as reported by the agency Kyodo News.

TSMC Chairman Mark Liu told reporters after the annual general meeting of shareholders that the proposed plant location is also in the prefecture and that the company will focus on mature rather than advanced manufacturing process technologies.

TSMC is building an $8.6 billion wafer plant in Kikuyo, Kumamoto, which is scheduled to start mass production in 2024.

TSMC signs a renewable energy supply agreement with ARK Power

Sony Group Corp. and Denso Corp., a major Japanese auto parts maker, are also investing in the factory, while the Japanese government is providing financial aid.

Liu said the Japanese government hopes the chipmaker will continue to expand its investments in Japan and many customers consider TSMC’s production capacity insufficient.

At the moment, TSMC has only acquired the land for its first factory in Japan and the land required for the second facility is still being arranged, the president added.