TSMC’s first Japan plant to hit 60% local procurement by 2030
Prime Minister Fumio Kishida during his visit to TSMC's new plant in Kikuyo, Kumamoto Prefecture, on Saturday | POOL / VIA JIJ
KIKUYO, KUMAMOTO PREF. –
Taiwan Semiconductor Manufacturing Co. (TSMC) told Prime Minister Fumio Kishida that the chipmaker expects to reach 60% local procurement for its first chip plant in the country by 2030.
The comment was made by TSMC Chief Executive Officer C.C. Wei during his meeting with Kishida on Saturday when the official visited the company’s plant in Kikuyo, Kumamoto Prefecture. TSMC spokesperson Nina Kao said that it’s a target for indirect materials used in the manufacturing process but not included in the final products, and the goal doesn’t include machinery.
Japanese officials are hoping TSMC’s arrival will help boost local suppliers’ technology and business. Tokyo has already allocated ¥476 billion ($3.1 billion) for TSMC’s first factory which was built though a joint venture between the Taiwanese chipmaker and local companies including Sony Group.
TSMC said it plans to start shipping logic chips for camera sensors and automobiles from the first facility in Kumamoto by the end of this year.
Wei also said Saturday during a meeting with Kishida that TSMC will build its second factory in Japan in Kikuyo. Japan’s government has pledged an additional ¥732 billion in subsidies for TSMC to build a second fab.
Kishida said that the world's largest contract manufacturer of semiconductor chips operating plants in Kumamoto will have a huge ripple effect on the entire country of Japan.
"It's an important project for a wide range of industries, including that of electric vehicles," the prime minister added, expressing his expectations for TSMC's operations in Japan.
Wei said that the Japanese government's forward-thinking investment policy regarding the semiconductor industry will bring an innovative era for the digital economy.
The company plans to start the construction of the second plant by the end of this year, with a goal to begin operations by the end of 2027.
As the Japanese government is aiming to boost domestic production of semiconductors, Kishida's visit to the Kikuyo plant was made in hopes of promoting such a policy.
Kikuyo Mayor Takatoshi Yoshimoto said in a statement that he sincerely welcomes the CEO's announcement. He said that he hopes TSMC's operations in Japan will contribute to ensuring the country's economic security.
TSMC’s first Japan plant to hit 60% local procurement by 2030
Japanese officials are hoping TSMC’s arrival will help boost local suppliers’ technology and business.
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