TSMC and Toyota Partner to Set Up a New Semiconductor Plant in Japan

Taiwan Semiconductor Manufacturing Co (TSMC) is scheduled to build a second semiconductor plant in Kumamoto Prefecture, Japan with Toyota Motor Corp as an additional investor. This step, in line with the Prime Minister Fumio Kishida’s plan to strengthen Japan-based semiconductor production capacities, constitutes a major trend of global chip manufacturing.

The partnership highlights the cross-industry drive to strengthen the semiconductor supply chain critical for different technologies, such as vehicles and smartphones. Investment in the new facility is limited to US$5.26 billion, highlighting the drive for semiconductor technology development with 6- and 7-nanometre process technologies integration.

Scheduled to begin construction by the end of this year and operational in 2027, the project is meant for more than just manufacturing growth. It shows the willingness to innovate, as more than 100K twelve-inch wafers per month will be produced and over 3,400 high tech jobs created.

This strategic initiative is timely considering that countries worldwide understand the need for a strong semiconductor supply chain, especially with recent shortages affecting industries from automotive to consumer electronics. The joint venture between TSMC and Toyota reflects a collective response in tackling these challenges with the aim of improving technological advancement within semiconductor industries.