In a bold move to diversify its supply chain efforts, Taiwan Semiconductor Manufacturing Company (TSMC) has inaugurated its first chip manufacturing plant in Japan. This strategic maneuver comes amidst escalating trade tensions between the United States and China, underscoring TSMC's proactive approach to navigate geopolitical uncertainties.
Renowned as the world's largest contract chipmaker catering to tech giants like Nvidia and Apple, TSMC has been sought after by various countries, including those in Europe and the United States, to establish local manufacturing facilities within their borders.
Paul You, CEO of First Securities Investment Corporation, cautioned last month about the potential risks looming over the global semiconductor industry, including TSMC, due to the ongoing chip trade war between the United States and China.
"I believe that the escalating tensions between the United States and China, particularly in the realm of chip warfare, will continue to intensify, impeding the growth of the global semiconductor industry," remarked You as cited by CNBC on Monday (4/3/2024).
Situated in Kumamoto, Japan, the newly inaugurated chip fabrication plant boasts state-of-the-art cleanroom facilities, meticulously controlled and sterilized environments essential for chip manufacturing. Spanning approximately 45,000 square meters, production operations are slated to commence by the end of 2024.
Japan Advanced Semiconductor Manufacturing Inc (JASM), a manufacturing firm predominantly owned by TSMC, commenced the construction of its plant in April 2022.
Established in Japan in 2021 with support from the Japanese government, Sony Semiconductor Solutions, and Denso Corporation, a Japanese automotive component manufacturer, JASM aims to bolster the semiconductor ecosystem within the country.
Japan has been striving to fortify its presence in the semiconductor industry amid stiff competition from leading chip-producing nations such as Taiwan and South Korea. According to reports from the Center for Strategic & International Studies, Japan's chip manufacturing sector lags a decade behind industry leaders like TSMC and Samsung.
Earlier this month, TSMC, Sony Semiconductor Solutions, automotive manufacturer Toyota, and Denso announced further investments in JASM for the construction of a second chip plant. Construction is scheduled to commence by the end of this year, with operations expected to commence by late 2027.
With the establishment of these two plants, it is anticipated to create more than 3,400 job opportunities, particularly for technology professionals with advanced skill sets. setup 1.1.1.1 alternate here website.
TSMC's two facilities in Japan will primarily focus on semiconductor production catering to automotive, industrial, consumer electronics, and high-performance computing needs.
Moreover, the company is embarking on one of its largest overseas projects with a USD 40 billion investment for two chip manufacturing plants aimed at meeting the annual demand from the United States.
