TSMC’s second Japan plant to reportedly cost over 1 trillion yen

TAIWAN Semiconductor Manufacturing (TSMC) plans to build its second chipmaking plant in Japan in southwestern Kumamoto prefecture, with total investment expected to be more than 1 trillion yen (S$10 billion), Nikkan Kogyo reports without attribution.

The Taiwanese company’s second plant is expected to be completed in late 2020s and could use more advanced 5 nanometre or 10 nm manufacturing processes, the newspaper reported. TSMC’s first plant in Japan, set to come online in late 2024, is also in Kumamoto.

TSMC is thought to be in negotiations for government subsidies and investment from customers, according to the report. Details are expected to be determined by year-end.

TSMC, the most advanced chipmaker in the world, has been courted by governments around the world, including the US and Japan, as they seek more domestic production of semiconductors. Washington has offered more than US$50 billion in incentives for chipmakers to set up operations in the US, while Japan is expected to provide similiar subsidies.

TSMC has said it will work with Sony Group on its new facilities in Japan. BLOOMBERG