Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to build Japan’s first chip plant. The news comes at a time when Japan is trying to strengthen its supply chain due to a global chip shortage.
According to NikkeiAsia, CEO of the world’s largest contract chip maker, has told investors that customers and the Japanese government have backed TSMC to make the investment. He goes on to explain that the plant focuses on the manufacturing process of 22-nanometer and 28-nanometer, which can be used in a variety of chips from image sensors to even microcontrollers. Construction of the new plant is scheduled to begin next year and chip production will begin in 2024.
The senior TSMC official has not yet revealed the exact amount of investment made. However, the Taiwanese company has shared its financial report, which shows its net profit for the period from July to September 2021. During this time, TSMC saw a 14% increase in profits as it increased its production, most of which was related to the new Apple iPhone 13 series.
TSMC’s move to Japan is a huge move given its multi-year strategy of establishing production in Taiwan. In addition, the company is building an advanced chip plant in the United States as well as the state of Arizona. On the other hand, they are also considering building a factory in Germany.
Earlier in the day, TSMC reported that the company plans to set up a joint chip plant in Japan with Sony. The global shortage of chips and semiconductors has affected many industries around the world, making it very difficult to buy some hardware components such as graphics cards and consoles. So many companies are investing in new factories to solve this problem.