Taiwan Semiconductor Manufacturing Co (TSMC) is taking a big step forward in Japan, announcing the construction of a second semiconductor plant. With Toyota Motor Corp coming on board as a new investor, the companies are clear that there will be signals a significant shift in the landscape of global chip manufacturing.

Construction will start later this year, and the factory will be operational by 2027

TSMC, recognized as the leading contract chip maker globally, is expanding its presence in Kumamoto Prefecture, Japan. This initiative is a strategic move, aligning with Prime Minister Fumio Kishida’s vision of enhancing Japan’s semiconductor production capabilities.

The collaboration between TSMC and Toyota is noteworthy. It highlights a cross-industry effort to strengthen the semiconductor supply chain, a critical component for a wide range of technologies from vehicles to smartphones. The investment, capped at US$5.26 billion for the new facility, underscores the importance of advancing semiconductor technology, with the addition of 6- and 7-nanometre process technologies at the new site.

Scheduled to start construction by the end of this year and operational by 2027, this project is more than a manufacturing expansion. It’s a commitment to innovation and technological advancement, with the potential to produce over 100,000 12-inch wafers monthly and create more than 3,400 high-tech jobs.

This development comes at a time when countries are keenly aware of the need for a robust semiconductor supply chain, highlighted by recent global shortages that impacted everything from automotive to consumer electronics.

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