The joint venture between TSMC, Sony and Denso, which is being developed in southwestern Japan, is scheduled to begin producing series products next year. In the future, it will master the production of 28nm and 12nm components, but the matter will not be limited to one company in this area. Japanese media report that another TSMC factory is to be built here that can produce 6 nm chips.
As explained Nikkei Asian ReviewFor the construction of the new company, it is planned to invest the equivalent of 13.3 billion US dollars at the current exchange rate, which is more than one and a half times the budget of the first company. The Japanese government is prepared to cover slightly less than half of this amount through subsidies. Aside from the longer-term Rapidus consortium project to begin producing 2nm chips in Japan in the second half of the decade, TSMC’s second facility will be the most advanced in the country in terms of the lithography technologies used. Construction is scheduled to begin next summer, with series production scheduled to begin by 2027.
By the end of this month, the Japanese government will decide on the size of the additional budget for the current fiscal year, which ends in March next year. Japanese authorities intend to allocate more than $22 billion to subsidize the national semiconductor industry. Currently, existing companies in the country are capable of producing 40nm products at most. The second TSMC factory will begin producing 12nm and 6nm chips in quantities of up to 60,000 pieces per month. The company’s customers will be Sony-led shareholders, but chips will also be supplied externally.
It is expected that, subject to the commissioning of two companies in Japan, tax revenue from their activities will cover government subsidies by 2037. The Rapidus consortium, which aims to produce 2nm chips by 2027, can qualify for $2.2 billion in subsidies so far, but the government is preparing to provide about $4 billion more, to build a line next door that specializes in chip packaging and testing. There are other recipients of government subsidies in the Land of the Rising Sun. Sony is relying on government support to organize the production of image sensors, Intel will expand cooperation with Japanese material and equipment suppliers and develop advanced methods of packaging chips. Japanese authorities will use additional funds to train personnel for the semiconductor industry, as well as finance the development of advanced automotive chips and artificial intelligence systems. In total, the Japanese authorities have already provided more than $13 billion in various subsidies in recent years.