Hardware

TSMC Confirms It Will Set Up Chip Manufacturing In Japan – It Will Offer Old Technological Processes

Rumors of TSMC’s intentions, in cooperation with several Japanese companies and enterprises, to build their first semiconductor component production facility in the Land of the Rising Sun, have been running for a long time, but it was only at the quarterly reporting conference this week that the Taiwanese contractor’s management admitted that a positive decision had been made on this project.

Image Source: Getty Images

Image Source: Getty Images

As noted by publications Bloomberg and Nikkei Asian Review, TSMC CEO CC Wei at a reporting event on Thursday confirmed his intention to begin construction of the company’s first facility in Japan next year. By the end of 2024, it should already begin to produce products for various purposes, manufactured using 22-nm and 28-nm technologies. In addition to the Japanese government, two large TSMC clients in the country should also invest in the project, but their names were not disclosed. Previously, it was believed that the Japanese companies Sony and Denso are most interested in the emergence of such an enterprise. The first one needs image sensors for cameras, the second one needs automotive components. The lithographic standards indicated in the official statement of TSMC allow the production of both types of products.

According to the head of TSMC, the company’s share in the global automotive components market reaches 15%. It is noteworthy that the profile revenue in the third quarter consistently grew by only 5%, and the share of auto components in the total revenue of TSMC remained at 4%, despite assurances from Taiwanese officials about priority services for automakers amid the semiconductor crisis.

The financial director of TSMC added that when organizing foreign production facilities, the company would like to count on the formation of joint ventures with local consumers. It is quite possible that the Japanese company will be financed and managed exactly according to this scheme. Official sources do not disclose the cost of the project; at the level of rumors, amounts of about $ 7 billion were previously discussed. This decision must still be approved by the company’s board of directors.

We also add that the already existing TSMC enterprise in the United States, which was built in 1996, was financed precisely on the terms of cooperation with other shareholders – Analog Devices and Altera, although just four years after the formation of WaferTech, the Taiwanese giant bought all the shares from partners. Now the company intends to establish production of 5nm products in Arizona by 2024, mainly for the needs of infrastructure and military customers, as the head of TSMC explained. The likelihood of building a TSMC plant in Germany is also not excluded.

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Dylan Harris

Dylan Harris is fascinated by tests and reviews of computer hardware.

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