TSMC (Taiwan Semiconductor Manufacturing Company) is apparently considering building its first chipmaking plant in Japan. The news arrives as Tokyo is urging companies to expand their semiconductor production within the country.
According to a NikkeiAsia report, the world’s largest contract chipmaker, who is also a key supplier for the Japanese tech giant Sony, is currently considering building a plant in the Kumamoto Prefecture. At the moment, the firm is evaluating the plan to build a site in western Japan, as per sources close to the matter. Notably, the location of the site would also make the plants close to one of Sony’s plants.
In other words, the latter might receive help from the former to meet the high demand for image sensors, automotive microcontrollers, and other chips as well. One of the sources stated that “TSMC is considering a proposal by the Japanese government to build an advanced chip factory in Japan, though it has not yet fully committed and finalized.” Notably, the plant would TSMC’s first chipmaking site in Japan, with companies from the region accounting for 4.7 percent of its revenue in 2020.
Furthermore, this would also mark a major shift in the company’s strategy of only maintaining production in its home country of Taiwan. Similarly, TSMC is also building an advanced chip plant in the US due to pressure from Washington, which has also been urging firms to build semiconductor facilities in the region just like Tokyo. Another source added that “One of the key reasons for TSMC to pick this location is because its large Japanese client Sony has a plant there.”
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