TSMC To Build Second Japan Chip Factory, Raising Investment To $20 Billion

Taiwanese chipmaker TSMC announced plans to build a second chip factory in Japan by the end of 2027, bringing total investment in its Japan venture to more than $20 billion. "Taiwan Semiconductor Manufacturing Co announced plans in 2021 to build a $7 billion chip plant in Kumamoto in southern Japan's Kyushu," notes Reuters. From the report: In a statement, TSMC, the world's largest contract chipmaker, said its majority-owned unit Japan Advanced Semiconductor Manufacturing in Kumamoto would build a second fabrication plant, or fab, in response to rising customer demand. The second fab will begin construction by the end of this year and with both factories the site is expected to have total monthly capacity of more than 100,000 12-inch wafers to be used for automotive, industrial, consumer and high performance computing-related applications, TSMC said. The capacity plan may be further adjusted based upon customer demand, it added. TSMC's expansion in Kyushu is central to the Japanese government's efforts to rebuild the country's position as a leading chip manufacturing centre and ensure the stable supply of chips amid trade tensions between the United States and China. The decision to build a second fab is a vote of confidence by TSMC in Japan where construction of the first fab has run smoothly and which, Reuters has reported, it sees as a source of diligent workers with a government that is easy to deal with.

Read more of this story at Slashdot.