TSMC's Kumamoto Wafer Factory: Honda Order and Capacity Concerns

In recent news, TSMC's wafer factory in Kumamoto, Japan, is gaining attention as it has not yet commenced mass production but is already facing high demand, with its production capacity completely booked.

TSMC, the renowned semiconductor manufacturer, has secured a significant order from Honda, the world's seventh-largest automaker. This marks the first time Honda has directly placed an order for automotive semiconductors with TSMC. Industry experts predict that the production of Honda's order will take place at TSMC's newly established Kumamoto factory. This development is expected to enhance the initial production capacity utilization of the facility.

TSMC has been consistently making strides in the CIS-related chip manufacturing sector in recent years, securing orders from prominent companies such as OmniVision, Sony, and ON Semiconductor. TSMC's joint venture wafer factory with Sony in Japan is set to initiate volume production of CIS components, with the possibility of even constructing a second factory.

While Sony continues to produce its CIS back-end color filter and micro lens processes internally, there are indications that the company may consider outsourcing these processes in the future. This could potentially create opportunities for collaboration with TSMC.

Additionally, it is worth noting that Sony Semiconductor, another major customer of the Kumamoto wafer factory, has expressed dissatisfaction with the factory's production capacity. Sony Semiconductor's President, Shoji Shimizu, stated in a recent conference that the capacity of TSMC's Kumamoto factory falls significantly short of meeting Sony's chip demands. Sony, as the world's fifth-largest wafer manufacturer, currently operates five 12-inch wafer factories in Japan, boasting a total capacity approximately three times that of TSMC's Kumamoto factory.

To address the issue of insufficient capacity, TSMC Chairman Liu Deyin mentioned during a shareholders' meeting in June that the establishment of a second wafer factory in Japan is being evaluated. It was reported earlier by Bloomberg that TSMC has already shared preliminary information about the second factory with Sony, although Sony is still considering whether to invest in this endeavor.