Earlier this week, TSMC (Taiwan Semiconductor Manufacturing Company) has announced that it would be investing a sizeable amount of 7 billion US Dollars for its new chip plant that will be constructed in Japan.
The new chip plant is a major step for the world’s largest contract chipmaker who is shifting its advanced semiconductor production outside of its home country for the first time. Notably, the firm will be investing the large figure along with Sony, who has pledged to invest 500 million US Dollars into this factory as well. As per our previous report. this new chip plant will also be the one that supplies Sony with semiconductors that will be used for its reputed image sensor business.
According to Reuters, the construction of the new chip plant will begin next year, while the production is expected to start by the end of 2024. In a joint statement, Sony and TSMC stated that the “The fab is expected to directly create about 1,500 high tech professional jobs and to have a monthly production capacity of 45,000 12 inch wafers.” Furthermore, the site will also produce 22 nanometer and 28 nanometer chips to address the robust demand for specialty chip technologies.
The project also has great support from the Japanese government, although, whether this support included financial backing is currently unknown. However, we do know that Japanese industry ministry officials are considering this a success since they have sought to bring TSMC’s plant to the country. Amid the global shortage of semiconductors, unsteady supply chains, and even the trade disputes between US and China, the demand for key components for production still grows. So, Japan will likely benefit from this new chip plant.
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