TSMC Japan Plant 1 Plans 60% Local Procurement Rate by 2030

Taiwan's TSMC, the world's No. 1 foundry (semiconductor contract manufacturing) company, announced that the local procurement rate of its Japan Plant 1 is expected to reach 60% by 2030.

[Image source=AP Yonhap News]

According to The Japan Times and others, TSMC CEO Wei Zhejia told Japanese Prime Minister Fumio Kishida, who visited Kumamoto Prefecture on the 6th to inspect TSMC's Japan Plant 1, this information. TSMC spokesperson Nina Kao explained that the procurement rate target relates to indirect materials used in the manufacturing process but not included in the final product, and equipment is not included.

Japan expects TSMC's entry to help activate the technology and business of local suppliers. The Japanese government is providing 476 billion yen (approximately 4.2 trillion KRW) in support for Plant 1, which was built through a joint venture between TSMC and local companies such as Sony Group. Additionally, it has promised to provide an additional subsidy of 732 billion yen (approximately 6.5 trillion KRW) for TSMC's Plant 2.

TSMC plans to ship camera sensors and automotive logic chips from Kumamoto Plant 1 by the end of this year. It also plans to start construction of Plant 2 by the end of the year, aiming for operation by the end of 2027. During the meeting between CEO Wei Zhejia and Prime Minister Kishida on the same day, the establishment of Plant 2 was also discussed. Prime Minister Kishida expressed high expectations for TSMC's business in Japan, calling it "an important project across various industries, including electric vehicles."