TSMC will build a second foundry in Japan, the semiconductor giant and its partners announced on Tuesday, weeks before the official opening of the first in the country.
Taiwan Semiconductor Manufacturing Company—which counts Apple and Nvidia as clients—controls more than half the world’s output of silicon wafers, used in everything from smartphones to cars and missiles.
It has faced geopolitical conflicts between the United States and China in recent years, as the two countries clash over generational restrictions on imports, industry and Taiwan, their main production base.
The second plant is expected to “begin operations by the end of 2027,” TSMC said Tuesday in conjunction with Sony Semiconductor Solutions Corporation, DENSO and Toyota.
“With JASM’s first production plant, which is expected to come online in 2024, the total investment in JASM will exceed $20 billion with the strong help of the Japanese government,” he said.
Joint venture JASM, or Japan Advanced Semiconductor Manufacturing, is TSMC’s majority-owned manufacturing subsidiary in Kumamoto prefecture, where both factories will be based.
“In response to increased visitor demand, JASM plans to begin the design of its second plant by the end of 2024. The increase in production scale is also expected to influence JASM’s overall cargo design and supply chain efficiency,” the companies said.
The company’s chairman, Mark Liu, said last month that the opening rite of the first foundry would take place on Feb. 24.
The total production capacity of the two plants is expected to reach more than 100,000 12-inch wafers per month.
The sites will create more than 3,400 high-tech jobs, they said.
TSMC separately said on Tuesday that its board of trustees had approved a capital injection of up to $5. 26 billion into JASM, without elaborating.
The Japanese government announced last year that it plans to spend $13 billion to breathe life into domestic production of strategic semiconductors and generative artificial intelligence technologies.
Part of that spending would be to support the construction of a second TSMC plant in Kumamoto, a Japanese trade ministry official said in November.
The company said its board also approved on Tuesday capital injection of up to $5 billion into its wholly-owned subsidiary TSMC Arizona, without elaborating.
Global considerations about the deterioration between Taipei and Beijing, which claims the self-governing island as its territory, have fueled U. S. efforts to convince TSMC to build the plant in Arizona, one of the largest foreign investments in the country.
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