TSMC to Build Its First Chip Plant in Japan

TSMC to Build Its First Chip Plant in Japan

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TSMC, the company that manufacturers chips for Apple, has announced that it will build its first-ever plant in Japan, reports Nikkei.

CEO C.C. Wei told investors that the company has support from its customers and the government of Japan to proceed with the investment. The plant will focus on 22nm and 28nm technology that can be applied to various chip types from image sensors to microcontrollers.

The Japanese government says total investment will be up to 1 trillion yen ($8.8 billion). This is in addition to the three-year, $100 billion investment plans previously announced by TSMC.

Construction of the factory is planned to start next year, with mass production slated to begin in 2024. Though TSMC normally owns 100% of its overseas plants, the company does not rule out having joint ventures with other companies or its customers, company CFO Wendell Huang said. He did not address a report by Nikkei last Friday that Sony will jointly invest in the new plant.

Notably, Wei also acknowledged that demand for some devices is softening and that component shortages are affecting orders.

"We are seeing demand go soft in the smartphone and PC markets ... but TSMC's capacity will remain tight in 2021 and throughout 2022," Wei said.

More details in the full report linked below...

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TSMC to Build Its First Chip Plant in Japan