Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, inaugurated its first chip plant in Japan with an opening ceremony in Kikuyo, Kumamoto Prefecture. The factory, operated by TSMC subsidiary Japan Advanced Semiconductor Manufacturing Co., is slated to commence mass production of mature-technology semiconductors, including 12-nanometer chips used in automotive and industrial equipment, later this year.
TSMC’s decision to establish a chip plant in Japan reflects its strategic move to diversify its production sites amid growing tensions between Taiwan and China. By expanding its operations globally, TSMC aims to mitigate risks arising from political uncertainties and ensure a stable supply chain for its products. The company has also announced plans to build chip plants in Arizona, United States, and Dresden, Germany.
The $8.6 billion investment in the Japanese chip factory demonstrates TSMC’s commitment to the region and reflects its confidence in the Japanese market. It is worth noting that TSMC’s venture in Japan has attracted substantial support from various stakeholders. Sony Group Corp. and Denso Corp., leading Japanese companies in their respective industries, have acquired minority stakes in Japan Advanced Semiconductor Manufacturing Co. Additionally, the Japanese government has offered significant subsidies amounting to 476 billion yen ($3.2 billion) to attract TSMC and revitalize the country’s chip sector.
The establishment of TSMC’s chip plant in Japan aligns with the Japanese government’s efforts to strengthen its semiconductor industry and enhance its supply chains. Japan was once a dominant player in the chip market, holding over 50 percent global market share in the 1980s. However, increasing trade disputes with the United States significantly impacted the country’s competitiveness in this sector. With the rapid digitalization of the world and the soaring demand for semiconductors, Japan aims to regain its position and ensure its technological independence.
In conclusion, TSMC’s entry into the Japanese chip market signifies a momentous development for both parties. It further diversifies TSMC’s production capabilities and demonstrates Japan’s determination to revitalize its chip sector. As demand for semiconductors continues to rise, this collaboration holds promise for the future of the global chip industry.
FAQ
1. Why did TSMC establish a chip plant in Japan?
TSMC established a chip plant in Japan as a strategic move to diversify its production sites and mitigate risks arising from political uncertainties between Taiwan and China. By expanding globally, TSMC aims to ensure a stable supply chain for its products.
2. What kind of semiconductors will be produced in the Japanese chip plant?
The Japanese chip plant will commence mass production of mature-technology semiconductors, including 12-nanometer chips that are used in automotive and industrial equipment.
3. Where else is TSMC planning to build chip plants?
TSMC has announced plans to build chip plants in Arizona, United States, and Dresden, Germany, in addition to the newly established chip plant in Japan.
4. How much did TSMC invest in the Japanese chip factory?
TSMC invested $8.6 billion in the Japanese chip factory.
5. Who are some of the stakeholders supporting TSMC’s venture in Japan?
Sony Group Corp. and Denso Corp., leading Japanese companies in their respective industries, have acquired minority stakes in Japan Advanced Semiconductor Manufacturing Co. The Japanese government has also offered significant subsidies to attract TSMC and revitalize the country’s chip sector.
Definitions
– Chip plant: A facility where semiconductor chips are manufactured.
– Semiconductors: Electronic components made from materials that have properties between those of conductors and insulators. They are used in a wide range of electronic devices.
– Supply chain: The network of organizations involved in the production and delivery of a product or service.
– Stakeholders: Individuals or groups who have an interest or stake in the success of a company or project.
Related Links
– TSMC: Official website of Taiwan Semiconductor Manufacturing Co.
– Sony Group Corp.: Official website of Sony Group Corp.
– Denso Corp.: Official website of Denso Corp.
– Japanese Government: Official website of the Japanese government.
The source of the article is from the blog tvbzorg.com