Denso stake in TSMC to help expand Japan chip factory

In a statement, on Tuesday, Taiwan Semiconductor Manufacturing Co (TSMC) said that auto supplier Denso Corp will take a minority stake in the chip plant it is building in Japan with Sony Group. The factory will expand, with an extra $1.6 billion in spending and an investment of US$350 million from Denso.

“To meet market demand, it had decided to enhance the plant’s capabilities and increase monthly production capacity to 55,000 12-inch wafers, putting the new total cost at around $8.6 billion,” TSMC said in a statement.

“Semiconductors are becoming increasingly important in the automotive industry as mobility technologies evolve, including automated driving and electrification,” Denso chief executive officer Koji Arima said in the statement. “Through this partnership, we contribute to the stable supply of semiconductors over the medium to long term and thus to the automotive industry.”

CT Bureau