Chip giant Taiwan Semiconductor Manufacturing Co. (TSMC) has announced its plan to establish a second manufacturing plant in Japan, with support from tech giant Sony and carmaker Toyota.

As the company continues to expand its global presence, CNBC reported that the new facility will be operated by Japan Advanced Semiconductor Manufacturing, Inc. (JASM), TSMC's majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan. 

Second TSMC Chip Factory in Japan

According to a joint press release of TSMC, Sony Semiconductor Solutions Corporation (SSS), DENSO Corporation, and Toyota Motor Corporation, the investment aims to bolster the manufacturing capabilities of JASM.

JASM targets to start the construction of the new factory by the end of 2024 and bring it into operation by the end of 2027. The decision to expand comes in response to increasing customer demand, prompting JASM to ramp up production capacity.

JASM's first factory is scheduled to begin operation later this year. TSMC noted that the overall investment in JASM, factoring in the first facility, will exceed $20 billion. This sum includes other venture partners' contributions, according to CNBC.

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TSMC's Two Factories in Japan

The two TSMC factories in Japan will not produce the most cutting-edge chips but focus on semiconductors for the automotive industry, industrial uses, consumer, and high-performance computing.

Once operational, the combined output from both factories at JASM's Kumamoto site is projected to exceed 100,000 12-inch wafers per month. These wafers will support various technologies, from cars to smartphones.

The expansion initiative will also create over 3,400 high-tech professional jobs, contributing to the local economy of Japan. With this investment, TSMC, SSS, DENSO, and Toyota will hold equity stakes of around 86.5%, 6.0%, 5.5%, and 2.0% in JASM, respectively. 

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