Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, opened its first factory in Japan on Feb. 24, as the Japanese government aims to enhance the supply chain of advanced semiconductors while mitigating the economic risks from tensions between Taiwan and China.
The government will provide about ¥1.2 trillion in subsidies for the project, which also sees TSMC starting the construction of a second plant in Kumamoto Prefecture within the year. Production there will start at the end of 2027.
The first factory, built in the town of Kikuyo in Kumamoto, is set to start mass production of mature-technology semiconductors, including 12-nanometer chips used in automobiles and industrial equipment, in the October-December quarter this year.
In a video message to attendees at the plant’s opening ceremony, Prime Minister Fumio Kishida said the government has decided to financially support the second factory as well.
“Semiconductors are an essential technology for digitalization and decarbonization,” Kishida said.
The Japanese government has been trying to rejuvenate the country’s once-powerful chip sector and strengthen its supply chains as demand for semiconductors continues to grow in every corner of a digitalizing world. (Kyodo)