TSMC (Taiwan Semiconductor Manufacturing Company) revealed its plans of building its first chip plant in Japan earlier today (14th October 2021). The news arrives as Japan seeks to strengthen its supply chain amid an ongoing global semiconductor shortage.
According to a NikkeiAsia report, the world’s largest contract chipmaker’s CEO C.C. Wei told investors that the firm has received support from both its customers and the Japanese government for this investment. Wei added that the plant will focus on the 22 nanometer and 28 nanometer process technology that can be used across many chip types, ranging from image sensors to even microcontrollers. The construction of the new chip site is planned to start next year, with production scheduled to begin in 2024.
The senior official has yet to disclose the exact size of the investment. Although, the company did share its financial report on the same day, which revealed its net profits for the period between July and September 2021. During this time, the firm saw a near 14 percent rise in net profits as it ramped up the production of processors for the new Apple iPhone 13 series. Furthermore, TSMC’s gross margin was 51.3 percent while its operating margin came in at 41.2 percent.
Notably, TSMC’s shift to Japan marks a major move considering the company had retained its decades long strategy of having its production based in Taiwan. Similar to Japan, the company is also constructing an advanced chip plant in the US as well, in the state of Arizona. Interestingly, a plan for a German site is also being considered as of right now.
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