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Japan Aims To Invite TSMC To Build Joint Advanced Chip Manufacturing Plant: Report

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  • The report said without citing sources that the government is planning to offer a total of several hundred billion yen, or equivalent to several billion dollars over multiple years to overseas chipmakers who join the project
  • Recently, TSMC said that it intends to build and operate an advanced semiconductor fab in the United States

As per a report by the Yomiuri daily, Japan is aiming to invite Taiwan Semiconductor Manufacturing Co Ltd (TSMC) or other global chipmakers in order to build an advanced chip manufacturing plant jointly with domestic chip equipment suppliers. The report said that the Japanese government aims to tap the expertise of global chipmakers to rejuvenate the domestic chip industry which is lagging. It added that advanced chip technologies have become a focal point in national security issues. The report gave no timeline for the project.

The report said without citing sources that the government is planning to offer a total of several hundred billion yen, or equivalent to several billion dollars. It will be done over multiple years to overseas chipmakers who join the project as per the report.

When Reuters contacted a TSMC spokesperson, he/ she denied there was any such plan at the moment. He/she added that the company would not rule anything out in the future. The Japanese industry ministry did not answer calls as per Reuters.

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Advanced semiconductor fab in the United States

Recently, TSMC said that it intends to build and operate an advanced semiconductor fab in the United States. TSMC’s total spending on this project, including capital expenditure, will be approximately $12 billion from 2021 to 2029. government and the State of Arizona.

The facility will be built in Arizona and will be possible only after mutual understanding and commitment to support from the U.S. federal government and the State of Arizona. It will utilise TSMC’s 5-nanometer technology for semiconductor wafer fabrication and have a 20,000 semiconductor wafer per month capacity. It will also create over 1,600 high-tech professional jobs directly, and thousands of indirect jobs in the semiconductor ecosystem as per the company.

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