TSMC, the world's largest chipmaker, plans to construct a second factory in Japan

Taiwan Semiconductor Manufacturing Company (TSMC) is increasing its production capacity in Japan as part of its ongoing global expansion efforts.

The leading chip manufacturer announced plans to construct a second semiconductor fabrication plant (fab) in response to increased customer demand. The subsidiary, Japan Advanced Semiconductor Manufacturing (JASM), primarily owned by TSMC, intends to commence construction by the end of 2024, with the facility expected to become operational by the end of 2027.

In collaboration with JASM’s initial plant, set to commence operations this year, the total investment in Japan will surpass $20 billion, bolstered by substantial support from the Japanese government, as well as investments from Toyota Motor and Sony. These facilities are anticipated to generate approximately 3,400 skilled jobs.

This expansion in Japan coincides with challenges encountered by TSMC in its Arizona project. Initially announced in 2022, the Arizona plant was part of a significant investment plan totaling $40 billion, intended to bolster US manufacturing, as praised by President Joe Biden. However, delays have pushed back the operational timeline to 2027 or 2028, instead of the originally anticipated 2026 start.

TSMC, headquartered in Hsinchu, Taiwan, dominates the production of cutting-edge semiconductors, supplying major tech companies like Apple and Nvidia. Its products are integral components in a wide array of devices, from smartphones to household appliances. While historically centered in Taiwan for advanced manufacturing, TSMC has expanded its global footprint, including the recent establishment of its first European factory in Dresden, Germany.

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