TSMC's second Japan plant advances Tokyo ambitions on chip supply

Nikkei Asia ^

[FarCenter]

TAIPEI -- Japan's efforts to lure global chipmakers are bearing fruit as Taiwan Semiconductor Manufacturing Co. announces plans to construct a second plant in the country, drawn by generous subsidies and cheaper costs compared with the U.S. and Europe.

The planned factory in Kumamoto prefecture announced Tuesday will produce 6-nanometer chips, the most advanced semiconductors to be made in Japan. Investments in the new plant are expected to surpass those for TSMC's first in Kumamoto.

Toyota Motor and Sony Group are among the companies expected to receive chips from the second plant. Toyota is investing in TSMC's Japanese subsidiary to help fund the construction. Sony sources components for its image sensors from TSMC.

TSMC "can expect demand for semiconductors related to electric vehicles and self-driving technology," said Arisa Liu, an analyst at the Taiwan Institute of Economic Research.

Smooth progress in TSMC's first Kumamoto plant helped pave the way for the latest plans. That first plant in southwestern Japan is expected to start mass production in the October-December quarter as planned, ahead of TSMC's other new facilities in the U.S. and Europe.

[FarCenter]

Japan has an advantage in that they produce some of the capital equipment that fills out the plant and they produce the fine chemicals and other supplies used in making semiconductors.

[TLI]

“”plant in southwestern Japan is expected to start mass production in the October-December quarter as planned, ahead of TSMC’s other new facilities in the U.S. and Europe.””

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Why in the world are they dragging their feet on a US plant?

Japan is better than Taiwan but the real market is the US.

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[indthkr]

Chip Supply Chain bump for later.....

[FarCenter]

>>Japan is better than Taiwan but the real market is the US.

Ultimately many semiconductors end up in the US. But most first go to China or South and Southeast Asia as parts for manufacture of finished goods that are exported to the US.

[sushiman]

Kumamoto ! That’s where I live .

[BobL]

“Why in the world are they dragging their feet on a US plant?”

Since no one answered, I’ll do it. We can thank our labor unions for the main reason that they gave up on the US.