TSMC plans second Japan factory to make higher-end chips

Taiwan Semiconductor Manufacturing Co plans to construct a second chip plant in Japan to manufacture 5 and 10 nanometre chips from the second half of the decade, the Nikkan Kogyo newspaper reported on Friday.

That decision could help Japan revive advanced semiconductor manufacturing, which it sees as key requirement for future economic growth driven by new digital technologies.

TSMC’s second plant in Japan will cost more than 1 trillion yen ($7.4 billion) to build, Nikkan Kogyo said.

When asked about the report, TSMC referred to comments from CEO C.C. Wei at its last quarterly earnings call in January that the company was considering building a second plant in Japan, and said it had nothing further to add.

The world’s leading maker of advanced logic chips is constructing its first foundry in Japan on Kyushu island, with production of 12 and 16 nanometre semiconductors slated to begin next year.

Japan’s government has offered TSMC a 476 billion yen subsidy, or about half the expected cost of the factory. Sony Group Corp and auto parts maker Denso Corp, which will use the chips it makes, are also investors. Reuters