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Taiwan Semiconductor Manufacturing Co. on Tuesday said it will open a second manufacturing plant in Japan with backing from technology giant Sony and automaker Toyota. Japan Advanced Semiconductor Manufacturing Inc., the manufacturing operation majority-owned by TSMC, will begin building the new factory this year and aims to bring it into operation by the end of 2027. TSMC said the overall investment in JASM, factoring in a first facility that is set to begin operation this year, will exceed $20 billion. The figure includes the contributions of other venture partners.
The expansion of TSMC's operations in Japan highlights the Japanese government's push to onshore manufacturing of semiconductors, which go into everything from cars and smartphones to military weapons and are seen as critical components in technology, such as artificial intelligence.
Japan is looking to regain some leadership in the semiconductor arena.
TSMC's two factories in Japan will not manufacture the most cutting-edge chips, but they will focus on applications in areas like semiconductors for the automotive industry, industrial uses, consumer and so-called high-performance computing.
The world's largest contract chip manufacturer, TSMC makes semiconductors for companies like Apple and Nvidia and has been courted by many countries to set up operations locally. One of TSMC's biggest overseas projects is a $40 billion investment in Arizona to build two chip manufacturing plants as part of a broader U.S. push to reshore manufacturing.
This is quite typical "Benchmarking" methodology used. I have the same skilled people, building and ramping fab in different countries. One will be ahead of schedule and another will be delayed. One gets clear government subsides and incentives, but another is always not clear. Which one will you invest? Upon evidence, what will be the problems?
This is quite typical "Benchmarking" methodology used. I have the same skilled people, building and ramping fab in different countries. One will be ahead of schedule and another will be delayed. One gets clear government subsides and incentives, but another is always not clear. Which one will you invest? Upon evidence, what will be the problems?
A country, a state/province, or a city needs to prove it's the best place to start a fab for an international semiconductor company. Entitlement, infightings, too much politics, out of control bureaucracy, and lacking international competition awareness will negatively impact the outcome.
In US, instead of learning or utilizing TSMC's fab building and operating capability, the narrative somehow has been changed to pressuring TSMC to yield to whatever various fractions' wishes. If this is the best US can perform, I don't have much hope ten years from now the US share in semiconductor manufacturing will change too much.
Japan is going to set a new standard for semiconductor reshoring that may not be achievable in other countries. I'm really excited to see it. Hopefully the US politicians are watching how it is done!
A country, a state/province, or a city needs to prove it's the best place to start a fab for an international semiconductor company. Entitlement, infightings, too much politics, out of control bureaucracy, and lacking international competition awareness will negatively impact the outcome.
In US, instead of learning or utilizing TSMC's fab building and operating capability, the narrative somehow has been changed to pressuring TSMC to yield to whatever various fractions' wishes. If this is the best US can perform, I don't have much hope ten years from now the US share in semiconductor manufacturing will change too much.
Or maybe the company could/should have understood the workforce and general contractor and subcontractors capability, expectations and work culture and thought carefully how to work in the new culture to hit their schedule. You can’t just go to a foreign land and do it your way. This isn’t Burger King!
I remember once in school being taught when in Rome act like a Roman. Everything I’ve hear is rejection of that thought.and approach.
Seen from this side of the pond the TSMC fabs in US and Japan are quite different and not comparable proposition. In US the claim is for an advanced fab fully TSMC for 5nm and below with a tinge of "national interest". In Japan it is a joint venture with local co-investors (mostly customers) for high volume/medium margin "mature" nodes. Totally different political and business cases. And this without taking into account the very different cultural and geografical distances with Taiwan home base.
Seen from this side of the pond the TSMC fabs in US and Japan are quite different and not comparable proposition. In US the claim is for an advanced fab fully TSMC for 5nm and below with a tinge of "national interest". In Japan it is a joint venture with local co-investors (mostly customers) for high volume/medium margin "mature" nodes. Totally different political and business cases. And this without taking into account the very different cultural and geografical distances with Taiwan home base.
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