TAIPEI (Taiwan News) — Chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) launched its first factory in Japan Saturday (Feb. 24) near the city of Kumamoto.
The project will be managed by Japan Advanced Semiconductor Manufacturing (JASM), a joint venture between TSMC, Sony Semiconductor Solutions, and Denso Corporation. Production of chips is scheduled to start during the final quarter of 2024.
The company plans to turn out 55,000 wafers of the 12, 16, 22, and 28 nanometer chips per month at the fab. The arrival of the factory is expected to fire up the local economy on the island of Kyushu, with shops stocking food products imported from Taiwan, per CNA.
TSMC also has projects in Arizona and Germany in the pipeline. The JASM Kumamoto fab will be Japan’s most advanced semiconductor producer.
By the end of the year, construction work will start on a second factory, with production expected to begin in 2027. Carmaker Toyota is expected to join the project.
The abundant availability of water needed for the semiconductor fabs is thought to be one of the main reasons why TSMC selected the Kumamoto area for its first Japanese plant. The company said it was planning to recycle 75% of the water it used.
By the end of 2024, 1,700 people will staff the factory, with more than 300 coming from Taiwan, just a two-hour flight away.
Saturday afternoon’s ceremony was expected to be attended by TSMC founder Morris Chang (張忠謀), Chair Mark Liu (劉德音), CEO C.C. Wei (魏哲家), National Development Council (NDC) Minister Kung Ming-hsin (龔明鑫), and Taiwan’s envoy to Japan, Frank Hsieh (謝長廷). In his address at the event, Chang said the plant would lead to a revival of the semiconductor industry in Japan, per CNA.
An expected appearance by Japanese Prime Minister Kishida Fumio will be substituted by a prerecorded message, though Economy, Trade and Industry Minister Saito Ken should be present to meet the Taiwanese guests, CNA reported.