[Taiwan Chip News] TSMC Strengthens Supply Chain, to Break Ground on Japan Plant in Second Half of Year

Construction Delayed from Q1 Due to Traffic Issues
TSMC Japan President: "Kumamoto Plant 2 to Break Ground in Second Half of the Year"
TSMC and University of Tokyo Establish Joint Research Center... Expanding Local Presence

The construction of TSMC's second plant in Kumamoto, Japan, is set to begin in the second half of this year. Although there had been speculation that the delay in the project, originally scheduled to start in the first quarter, was due to a 'pace adjustment' in consideration of trade risks and other factors, the company has reaffirmed its plan to break ground within the year without any setbacks.

According to local media outlets such as Taiwan Economic Daily, Onodera Makoto, President of TSMC Japan, recently announced that the second TSMC plant to be built in Kikuyo Town, Kumamoto Prefecture, Japan, will begin construction in the second half of this year. The plant was initially slated to break ground in the first quarter of this year, but the project schedule was delayed.

A view of TSMC Plant 1 located in Kikuyo Town, Kumamoto Prefecture, Japan. Photo by Yonhap News

Previously, TSMC Chairman Mark Liu explained at the annual shareholders' meeting held in Hsinchu, Taiwan, on June 3 that the construction of the Kumamoto Plant 2 was delayed due to 'regional traffic congestion.' While concerns had been raised as TSMC's global fab expansion schedule was pushed back, the construction timeline was reconfirmed in less than a month. An industry insider in Japan commented, "Now that the groundbreaking date has been set, TSMC's overseas business expansion will gain new momentum," adding, "This is also expected to inject fresh vitality into the company's performance."

TSMC continues to develop its business structure in Japan. There are also expectations that major partners such as Taiwan's Topco and MA-Tek will benefit simultaneously. Topco is a semiconductor materials and equipment company, while MA-Tek is a semiconductor testing firm; both are part of the TSMC ecosystem.

A Topco representative stated, "We look forward to collaborating with local Japanese manufacturers as TSMC expands its fabs in Japan." In the Kyushu region, there are equipment cleaning and maintenance companies with expertise in mature processes, and Topco plans to continue collaborating with these companies on next-generation processes as well. MA-Tek's Nagoya laboratory is currently operating at full capacity due to the rapid expansion of its Japanese customer base, and orders are reportedly spreading to the Kumamoto laboratory as a result. MA-Tek plans to expand equipment at both laboratories this year.

TSMC serves customers such as Sony in Japan. Onodera Makoto, President of TSMC Japan, stated, "Last year, TSMC's sales in Japan exceeded $4 billion, accounting for about 4% of our total revenue," adding, "Wafer shipments (based on 12-inch wafers) surpassed 1.49 million units, representing about 10% of our total volume."

Similarly, Plant 1, also located in Kikuyo Town, Kumamoto Prefecture, broke ground in April 2022 and began mass production at the end of last year. It is currently producing logic chips using the 12·28-nanometer (1 nm = one billionth of a meter) process. Once Plant 2 is completed, TSMC plans to begin mass production of 6-nanometer chips, which will be the most advanced process in Japan.

Meanwhile, TSMC is accelerating its entry into the Japanese market while also focusing on strengthening local research and development (R&D) capabilities and nurturing talent. On June 12, the company announced the opening of a joint research center with the University of Tokyo, where it plans to promote advanced semiconductor research, education, and talent development.

Taiwan Economic Daily News = Reporter Yoon Hyejung / Translated by Asia Economy

*This column is published as part of a strategic partnership between Asia Economy and Taiwan Economic Daily News.