A general view shows the new semiconductor factory of Japan Advanced Semiconductor Manufacturing (JASM), a subsidiary of Taiwanese chip giant TSMC.
Philip Fung | AFP | Getty Images
Taiwan Semiconductor Manufacturing Company The company opened its first chip factory in Japan on Saturday as part of diversifying its supply chains away from Taiwan amid escalating trade tensions between the United States and China.
Europe, the United States and other countries have turned to TSMC, the world's largest chipmaker with clients such as Nvidia and Apple, to set up local operations.
Paul Yu, chairman of First Securities Investment Corporation, said last month that the global semiconductor industry, including Taiwan's, could be at risk due to the chip war between the United States and China.
“I think the escalation between the US and China, especially like the chip war, will get higher and higher and that will dampen global semiconductor growth. [industry],” I told you.
Located in Kumamoto, Japan, the chip manufacturing plant will be equipped with a clean room — a controlled, sterile environment necessary for chip manufacturing — with an area of about 45,000 square meters, and is expected to begin production by the end of 2024. TSMC said.
Japan Advanced Semiconductor Manufacturing Inc., the manufacturing company majority owned by TSMC, began construction of the plant in April 2022.
JASM was established in Japan in 2021 with support from the Japanese government, Sony Semiconductor Solutions, and Japanese auto component maker Denso Corporation to support the growth of the country's semiconductor ecosystem.
Japan is striving to strengthen its presence in the field of semiconductors amid intense competition with major chip manufacturing countries such as Taiwan and South Korea. Its chip manufacturing industry is 10 years behind world leaders TSMC and Samsung, according to an August report from the Center for Strategic and International Studies.
Earlier this month, TSMC, Sony Semiconductor Solutions, automakers Toyota and Denso announced further investment in JASM to build a second chip manufacturing plant, with construction scheduled to begin by the end of the year and operations to begin by the end of 2027.
With the two plants, which are expected to directly create more than 3,400 high-tech professional jobs, the Japanese government's total investment in JASM will reach more than $20 billion.
TSMC's two factories in Japan will focus on producing semiconductors for automotive, industrial and consumer uses and to meet high-performance computing needs.
The company is also building one of its largest overseas projects with a $40 billion investment in Arizona for two chip manufacturing plants aimed at meeting annual US demand.
