TSMC Expansion Talk Fuels Kumamoto’s Semiconductor Ambitions

The Japan Advanced Semiconductor Manufacturing Company (JASM), established through a collaboration between TSMC, Sony, Denso Corporation, and Toyota, commenced the construction of a new production facility in Kumamoto Prefecture on Kyushu Island, Japan, in April 2022. This project has garnered support and subsidies from the Japanese government. TSMC held an inauguration ceremony on February 24, 2024, and plans to begin mass production by the end of 2024.

According to Trendforce, the newly appointed Governor of Kumamoto Prefecture, Takashi Kimura, expressed in a recent interview his unwavering commitment to persuading TSMC to establish a third wafer fab in the region. He has proposed visiting TSMC’s headquarters this summer to discuss these matters. Additionally, he aims to attract numerous semiconductor-related companies and research institutions to Kumamoto Prefecture, aspiring to create an industrial cluster akin to Taiwan’s Hsinchu Science Park, transforming the area into a semiconductor hub, encompassing AI, data centers, and autonomous driving technology.

TSMC has already confirmed the construction of a second wafer fab, set to commence at the end of 2024 and become operational by the end of 2027. The expansion of production capacity is expected to optimize overall cost structure and supply chain efficiency. The combined monthly production capacity of the two fabs is projected to exceed 100,000 12-inch wafers, employing semiconductor manufacturing processes such as 40nm, 22/28nm, 12/16nm, and 6/7nm, catering to automotive, industrial, consumer, and high-performance computing (HPC) sectors. Additionally, capacity planning can be adjusted based on customer demand, with an anticipated creation of over 3,400 high-tech jobs.