TSMC to build its second chip factory in Japan

Chip Plant: Chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) said on January 6 that it plans to build a second Japanese plant, which will be operational by end of 2027, bringing total investment in its Japan venture to more than $20 billion with the support of the Tokyo government.

TSMC announced plans in 2021 to build a $7 billion chip plant in Kumamoto in southern Japan's Kyushu.

In January, TSMC said its first Japanese factory would open in February with volume production in the fourth quarter, meanwhile,  the company was also exploring constructing a second factory in the country.

TSMC, the world's largest contract chipmaker, said its majority-owned unit Japan Advanced Semiconductor Manufacturing in Kumamoto would build a second fabrication plant, in response to rising customer demand, as per media reports.

The second fab's construction by the end of this year and with both factories the site is expected to have a total monthly capacity of more than 1,00,000 12-inch wafers to be used for automotive, industrial, consumer and high performance computing-related applications, the company said. 

The capacity plan may be further adjusted based upon customer demand, it added.

TSMC holds a 86.5 per cent stake in the Japanese venture, with Sony Group holding 6 per cent, auto parts maker Denso 5.5 aper cent and carmaker Toyota 2 per cent