Leading chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning to expand its presence in Japan with a second chip plant. The new plant will be used for the production of 5 and 10 nanometer chips starting in the second half of the decade, according to the Japanese newspaper Nikkan Kogyo.
Japan believes that improving its semiconductor manufacturing capabilities is important for its future economic growth, particularly in light of the increasing importance of digital technologies. Hence, a new TSMC factory could aid in revitalizing the country’s advanced semiconductor manufacturing industry. As per Nikkan Kogyo, TSMC’s second plant in Japan will cost more than 1 trillion yen (roughly $7.4 billion).
The Taiwanese company will be building its first foundry in Japan on Kyushu island, with an aim to start the production of 12 and 16 nanometer semiconductors next year. The Japanese government is said to offer TSMC a 476 billion yen subsidy, roughly half of the factory’s expected cost. Sony Group and auto parts maker Denso Corp, which will utilize the chips produced, have also invested in the expansion.
The Chip maker did not give an official about the report, however, it referred to comments from CEO C.C. Wei at its last quarterly earnings call in January. Wei has stated that TSMC is considering expanding its presence in Japan with a second plant.
For the unaware, TSMC is a significant player in the chipmaking industry, being the exclusive producer of chips used in iPhones. Additionally, it manufactures processors designed by the Cupertino company for its desktop computers and laptops. The Taiwanese firm also manufactures the majority of the Qualcomm chips that are used in Android phones.
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