TSMC Officially Confirms Factory Establishment in Japan... Accelerating Taiwan-Japan Semiconductor Alliance

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] Taiwan's TSMC, the world's largest semiconductor foundry (contract manufacturing) company, announced that it is considering building its first factory in Japan. Although there have been previous reports about TSMC's plan to build a factory in Japan, this is the first time TSMC has officially confirmed it. This is expected to further accelerate the semiconductor alliance between Japan and Taiwan, which are striving to strengthen the semiconductor industry.

According to major foreign media including Nihon Keizai Shimbun and The Wall Street Journal (WSJ) on the 16th, during the Q2 earnings conference call held online the previous day, TSMC CEO Wei Zhejia hinted at building a factory in Japan. CEO Wei said, "We are currently in the review stage regarding the construction of the first factory in Japan," adding, "We are proceeding with all possibilities in mind." He further stated, "We will make a final decision based on customer demand going forward."

He also revealed that production of automotive semiconductors is being expanded by about 60% compared to the previous year to resolve the global supply shortage, and forecasted, "The shortage of automotive semiconductors is expected to improve somewhat within a few months, but it may still have an impact until next year."

This is not the first time rumors of TSMC entering Japan have surfaced. Previously, Nihon Keizai Shimbun reported last month, citing sources, that TSMC was considering building a large-scale semiconductor factory using 300mm silicon wafers in Kumamoto Prefecture, Japan. However, TSMC had not commented on this until now, when it officially announced the construction of a factory in Japan.

Meanwhile, TSMC's Q2 revenue reached a record high for a quarter at 372.1 billion Taiwan dollars (approximately 15.2226 trillion Korean won), up 19.8% year-on-year. Net profit increased by 11% during the same period to 134.4 billion Taiwan dollars (approximately 5.4848 trillion Korean won).

CEO Wei Zhejia predicted, "The global semiconductor market (excluding memory) is expected to grow by 17% this year," and added, "Accordingly, TSMC's revenue is also expected to increase by more than 20% this year."