TSMC, the world's largest chip foundry, will expand its production in Japan and plans to set up a second chip factory in the country. TSMC said Toyota Motor will also become a new investor in Japan Advanced Semiconductor Manufacturing (JASM). JASM is located in Kumamoto Prefecture, Japan, and is majority-owned by TSMC. TSMC’s board of directors approved injecting no more than $5.26 billion into JASM, but it is unclear how the funds will be used.
The new factory will be adjacent to TSMC's first factory in Kumamoto. TSMC said in an announcement on Tuesday that it will add 6/7 nanometer process technology and improve the production technology of the park.
The second wafer fab is planned to start operations at the end of 2027. TSMC said that with the addition of the first wafer fab, "JASM's total investment amount will exceed US$20 billion."
TSMC said the total monthly production capacity of the two Kumamoto factories is expected to exceed 100,000 12-inch wafers, creating more than 3,400 high-tech jobs.
TSMC's first factory in Kumamoto is scheduled to start production in 2024. Through the latest investment, TSMC, Sony Semiconductor Solutions, Denso and Toyota Motor will hold approximately 86.5%, 6%, 5.5% and 2% of JASM's equity respectively.