TSMC considers expanding Japanese factory size

TSMC is currently erecting its new wafer plant, Fab21, in the state of Arizona. However, it has recently grappled with numerous complications, notably a dearth of skilled personnel essential for equipment installation. Such challenges might compel TSMC to postpone its transition to large-scale production.

According to Wccftech, a myriad of factors, including cultural disparities, have impeded the progress of TSMC’s American venture. An underestimated projection of project expenses has emerged as another stumbling block. Rumors suggest that the current construction outlay has surpassed the original budget by 20%, which is a staggering 50% higher than their Japanese enterprise. The tribulations faced in the U.S. have prompted TSMC to tread more cautiously with their German project. Intriguingly, the Japanese venture seems to be progressing with impeccable smoothness, spawning further contemplations for TSMC.

Japan’s semiconductor industry is firmly anchored with a robust foundation, complemented by the nation’s manufacturing sector’s insatiable demand for chips. In a collaborative endeavor with Sony and Denso, TSMC has embarked upon a new production base in Kumamoto Prefecture on Kyushu Island, targeting the production of 22/28nm chips. Insiders intimate that TSMC discerned the cost-effectiveness of their Japanese establishment, which pales the American counterpart’s expenses. Augmented by closer cultural affiliations and diminished operational frictions, TSMC contemplates amplifying the scope of its Japanese plant, potentially integrating more avant-garde manufacturing techniques.

TSMC’s Japanese factory is slated to commence production next year, whereas the American establishment might be deferred to 2025, and the German plant is anticipated to be operational by the close of 2027.