TSMC and Toyota Prepare for $5.26 Billion Investment in New Semiconductor Plant in Japan

TSMC and Toyota Prepare for $5.26 Billion Investment in New Semiconductor Plant in Japan

TSMC Announces Construction of Second Semiconductor Plant in Japan

Taiwan Semiconductor Manufacturing Co (TSMC) is set to make a significant advancement in Japan with the announcement of the construction of a second semiconductor plant. This move, backed by new investor Toyota Motor Corp, will bring about a major shift in the global chip manufacturing landscape.

Expansion in Kumamoto Prefecture

TSMC, globally recognized as the leading contract chip maker, is expanding its presence in Kumamoto Prefecture, Japan. This strategic initiative aligns with Prime Minister Fumio Kishida’s vision of enhancing Japan’s semiconductor production capabilities.

Collaboration with Toyota

The collaboration between TSMC and Toyota is a notable cross-industry effort to strengthen the semiconductor supply chain, a critical component for various technologies ranging from vehicles to smartphones. The investment for the new facility is capped at US$5.26 billion, with a focus on advancing semiconductor technology through the addition of 6- and 7-nanometre process technologies at the new site.

Commitment to Innovation and Job Creation

The construction of the new plant is scheduled to begin later this year and is expected to be operational by 2027. This project goes beyond manufacturing expansion; it represents a commitment to innovation and technological advancement. The new facility has the potential to produce over 100,000 12-inch wafers monthly and create more than 3,400 high-tech jobs.

Addressing Semiconductor Supply Chain Challenges

This development comes at a time when countries are increasingly aware of the need for a robust semiconductor supply chain. Recent global shortages have highlighted the impact on industries such as automotive and consumer electronics. The construction of the second semiconductor plant in Japan by TSMC, with the support of Toyota, aims to address these challenges and strengthen the global chip manufacturing ecosystem.

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