TSMC opens first plant in Japan as part of chipmaker's key global expansion

26 February 2024 , 14:40

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Taiwan's giant chipmaker, TSMC, has opened its first plant in Japan as part of its plans for global expansion plan (Kyodo News via AP) (Image: Kyodo News)

Taiwan's giant chipmaker, TSMC, has opened its first plant in Japan as part of its plans for global expansion plan.

TSMC Chairman Mark Liu., said: "We are deeply grateful for the seamless support provided by you at every step." He thanked the Japanese government, local community and business partners, including electronic giant Sony and auto-parts maker Denso. Morris Chang, the company's founder, was also there.

The new plant, called Japan Advanced Semiconductor Manufacturing, or JASM, will start working later this year. TSMC also shared plans for a second plant in Japan earlier this month.

TSMC is building its second factory in the U.S. and has plans for its first one in Europe. About forty years ago, Japan was one of the world leaders in chip making. Companies like Toshiba Corp. and NEC made half of the world's chips. But now they make less than 10% because of competition from South Korea, the U.S., Europe and TSMC.

The coronavirus pandemic has made it hard to get electronic chips, causing problems for factories, including car makers. Japan relies a lot on imported chips. Sony Semiconductor Solutions Corp., Denso Corp. and top car maker Toyota Motor Corp. are putting money into TSMC's Japan factory. TSMC will still own most (86.5%) of JASM.

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Once the two factories are working, they're expected to create 3,400 high-tech jobs, according to TSMC. It's really important for an economy to have a big supply of quality chips, especially with more people wanting electric cars and the accelerating emergence of artificial intelligence.

Some experts say Japan still leads in some parts of the industry, like Tokyo Electron who make the machines used to make chips. But, it looks like the Japanese government wants to catch up. They're helping out with different projects all over the country that involve Western Digital and Micron from the U.S., and Japanese companies like Renesas Electronics, Canon and Sumitomo.

Lawrence Matheson