Taiwan Semiconductor Manufacturing Co. (TSMC), the leading global contract chipmaker, has announced its plans to construct a second semiconductor plant in Japan. This move follows the company’s initial plant in Kumamoto Prefecture and aims to strengthen Japan’s semiconductor industry foundation while producing high-performance semiconductors.
TSMC has already commenced the construction of its first plant in Kikuyo and expects to begin mass production by the end of this year. The total investment for both plants is estimated to exceed $20 billion (about ¥3 trillion).
The upcoming second plant will focus on producing semiconductor chips with ultra-thin circuit line widths of 6-nanometer to 7-nanometer. Currently, Japan lacks the capacity to manufacture semiconductors with line widths thinner than 40-nanometers, while the global standard for mass production rests at a 3-nanometer circuit chip. Thus, TSMC’s commitment to establishing advanced production infrastructure in Japan is a significant development.
Due to disruptions in supply networks caused by the COVID-19 pandemic, global semiconductor shortages have become a pressing issue. Geostrategic tensions between the United States and China have heightened the urgency to rebuild and secure robust supply networks. Semiconductors play a crucial role in ensuring economic security.
Japan possesses strengths in semiconductor manufacturing equipment and materials. Numerous companies in these fields have relocated to the Kyushu region, highlighting the need to strengthen related industries through the development of industrial clusters, human resource development, and technology accumulation.
The decline of Japan’s semiconductor industry can be attributed, in part, to the global competition where domestic electronics manufacturers, primarily focused on home appliances, fell behind. Japan’s revitalization necessitates attracting semiconductor manufacturers to the nation while creating innovative and appealing products in collaboration with Japanese manufacturers.
In a bid to raise the overall level of Japan’s manufacturing industry, TSMC has garnered investments from prominent Japanese companies. This includes Sony Group Corp., Denso Corp., and Toyota Motor Corp., which aims to utilize advanced semiconductors in electric vehicles and autonomous driving technology.
To support the semiconductor industry, the government has allocated approximately ¥4 trillion in subsidies. The construction of a state-of-the-art semiconductor factory by Rapidus Corp., in which Toyota and NTT Corp. are among the investors, has commenced in Hokkaido as part of a public-private project. Alongside providing financial support to Rapidus, the government will extend substantial subsidies to TSMC’s two plants. The performance and effectiveness of these investments will be thoroughly evaluated.
TSMC’s expansion into Japan’s semiconductor industry signifies a positive step towards revitalizing and reinforcing the country’s competitive edge in the global market. With the establishment of advanced production facilities and the support of the government, Japan aims to reclaim its position as a leader in the semiconductor industry.
Taiwan Semiconductor Manufacturing Co. (TSMC), the leading global contract chipmaker, plans to construct a second semiconductor plant in Japan to strengthen Japan’s semiconductor industry foundation and produce high-performance semiconductors. TSMC has already started building its first plant in Kikuyo and expects to begin mass production by the end of this year. The total investment for both plants is estimated to exceed $20 billion.
The upcoming second plant will focus on producing semiconductor chips with ultra-thin circuit line widths of 6-nanometer to 7-nanometer. Currently, Japan lacks the capacity to manufacture semiconductors with line widths thinner than 40-nanometers, while the global standard for mass production is at a 3-nanometer circuit chip. TSMC’s commitment to establishing advanced production infrastructure in Japan is therefore significant.
Due to disruptions in supply networks caused by the COVID-19 pandemic, global semiconductor shortages have become a pressing issue. The United States and China’s geostrategic tensions have heightened the urgency to rebuild and secure robust supply networks, as semiconductors play a crucial role in ensuring economic security.
Japan has strengths in semiconductor manufacturing equipment and materials, but its industry has declined due to global competition and the focus of domestic electronics manufacturers primarily on home appliances. To revitalize Japan’s semiconductor industry, it is crucial to attract semiconductor manufacturers to the country and collaborate with Japanese manufacturers to create innovative and appealing products.
To support the semiconductor industry, the Japanese government has allocated approximately ¥4 trillion in subsidies. A state-of-the-art semiconductor factory is being built by Rapidus Corp. in Hokkaido as part of a public-private project, with investments from Toyota, NTT Corp., and others. The government will also provide substantial subsidies to TSMC’s two plants. The success of these investments will be evaluated.
TSMC’s expansion into Japan’s semiconductor industry is a positive step towards revitalizing and reinforcing the country’s competitive edge in the global market. With advanced production facilities and government support, Japan aims to reclaim its position as a leader in the semiconductor industry.
Key Terms:
– Semiconductor: A material that has electrical conductivity between a conductor and an insulator. It is used to make electronic devices.
– Circuit Line Width: The width of the conductive pathways on a semiconductor chip. Thinner circuit line widths allow for more complex and higher-performance chips.
– Mass Production: The production of large numbers of standardized products, often using automated processes.
– Subsidies: Financial assistance given by the government to support a particular industry or project.
Related Links:
– TSMC Official Website
– Sony Official Website
– Toyota Official Website
The source of the article is from the blog myshopsguide.com