TSMC's New Semiconductor Facility in Japan
Taiwan Semiconductor Manufacturing Company (TSMC) is poised to inaugurate its first fabrication facility in Japan, as reported by the China Times and Japanese media. The opening ceremony is scheduled for February 24, 2024. This facility, deemed the most advanced logic fabrication plant in Japan, marks a significant milestone in the semiconductor industry.
Technological Capabilities of the Facility
Situated near Kumamoto on Kyushu Island, the facility is designed to utilize TSMC's N28 (28nm-class) technology. This encompasses various N28 variants and the 22ULP fabrication process, tailored for ultra-low-power applications. Although not suited for cutting-edge system-on-chips in smartphones or PCs, these technologies are ideal for automotive and consumer electronics sectors, which have a substantial demand in Japan.
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The Facility's Role in Japan's Industry
TSMC's new fab is expected to play a pivotal role in fulfilling the persistent demand for processors in Japan's automotive and consumer electronics sectors. Given the extended lifecycle of many integrated circuits, the technology used in this facility is likely to remain relevant for a considerable duration.
Employment and Operational Details
Upon full operation, the facility will employ approximately 1,700 personnel. Currently, it houses about 1,400 employees, with an expected addition of 250 new graduates in the spring of 2024. The fab is set to commence chip production in the latter half of 2024.
TSMC's Global Expansion and Geopolitical Influence
Driven by increasing demand for chips and the current geopolitical situation, TSMC is expanding its operations beyond Taiwan. The company's expansion into Japan includes a partnership with Sony and an investment of $7 billion in the Kumamoto facility, with subsidies from the Japanese government. The final investment cost remains undisclosed.
Collaborative Projects and Research in Japan
TSMC is not only focusing on production but also on innovation and research in Japan. This includes setting up a research and development center and engaging in collaborative projects with the University of Tokyo.
