Chip Giant TSMC Opens Doors in Japan: 45,000 Wafers & 1,700 Jobs

Taiwan Semiconductor Manufacturing Company (TSMC) is investing in the construction of a new production facility in Kumamoto Prefecture on Kyushu Island, Japan. This advanced facility is dedicated to manufacturing 22/28nm chips, essential for the automotive and consumer electronics sectors. The construction project has now reached its final phase.

According to a report by Ctee, TSMC is set to inaugurate its Japanese factory with a grand opening ceremony on February 24, 2024. The company plans to commence production in the latter half of 2024, with an initial monthly capacity of 45,000 wafer units. Currently, the factory employs approximately 1,400 staff, and this number is expected to grow with the addition of 250 recent graduates in the spring of 2024. Upon full-scale operation, TSMC anticipates employing around 1,700 individuals.

This facility marks TSMC’s first wafer factory in Japan, a collaborative venture co-invested by Sony and DENSO Corporation. The investment for this project is estimated at 7 billion USD and was initiated in 2022. The Japanese government has supported the project, offering subsidies, although the exact amount remains undisclosed. Unlike TSMC’s slower-paced and costlier American venture, the Japanese project has progressed remarkably smoothly, with significantly lower overall costs. Additionally, cultural affinities have resulted in fewer challenges and frictions for the Japanese project.

There have been reports suggesting that TSMC is considering the construction of another new factory in Japan to expand its operations. This expansion would include the adoption of more advanced 12/16nm processes. Moreover, TSMC is establishing a research and development center in Japan and has chosen to collaborate with the University of Tokyo on various projects.