Taiwan’s TSMC eyes first chip plant in Japan – Auto Information by Automobilnews.eu

Taiwan’s TSMC eyes first chip plant in Japan

Taiwan’s key chip maker is contemplating Japanese manufacturing near Sony

Taiwan Semiconductor Manufacturing Firm is contemplating constructing its first chipmaking plant in Japan as the federal government there’s urging firms to broaden native semiconductor manufacturing, Nikkei reported.

TSMC is evaluating plans to construct a plant in Kumamoto Prefecture, in western Japan, 4 sources informed Nikkei Asia. The manufacturing unit could be close to one in every of key buyer Sony’s vegetation and assist meet rising demand for picture sensors, automotive microcontrollers and different chips, the sources mentioned.

“TSMC is contemplating a proposal by the Japanese authorities to construct a sophisticated chip manufacturing unit in Japan, although it has not but absolutely dedicated and finalised [the plan],” one of many sources informed Nikkei.

The plant could be the Taiwanese firm’s first chip making facility in Japan whose firms accounted for 4.7% of TSMC’s income in 2020. It could mark a big departure from the corporate’s many years lengthy technique of sustaining most of its manufacturing in its house market.

TSMC is constructing a sophisticated chip plant within the US in response to stress from Washington, which, like Tokyo, has been urging firms to construct semiconductor services regionally, Nikkei famous. Round 62% of TSMC’s income got here from North American purchasers in 2020.

In line with the tentative plan for the Kumamoto facility, TSMC would construct a 12-inch wafer plant capable of swap between totally different course of applied sciences, together with 28-nanometer and 16-nanometer manufacturing tech.

“TSMC doesn’t need to keep on with just one course of know-how … as lots of the instruments are shared,” one of many sources informed Nikkei Asia.

If constructed, the plant could be close to Sony’s manufacturing unit in Kumamoto, based on the 4 Nikkei sources “accustomed to the matter”. Nonetheless, the Taiwanese chipmaker will seemingly personal and run the manufacturing unit independently to keep away from any conflicts of curiosity, two sources mentioned.

“One of many key causes for TSMC to choose this location is as a result of its giant Japanese shopper Sony has a plant there,” an executive-level supply accustomed to the plans informed Nikkei.

Japanese information outlet Nikkan Kogyo Shimbun first reported final month TSMC was contemplating a chip facility in Japan.

TSMC declined to remark to Nikkei.

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