TSMC Expanding Chip Production: Focus on Japan
In a recent report by Japanese media, TSMC's Senior Vice President of Business Development and Overseas Operations, Mr. Zhang Xiaqiang, hinted at the possibility of TSMC manufacturing advanced chips in Japan. However, specific details were not disclosed. TSMC's current priority is to get the upcoming Kumamoto factory operational.
Currently, TSMC's most advanced chip manufacturing processes are centered in Taiwan, China. The company's new factory in the United States will be its first overseas facility for developing advanced processes. If TSMC expands its advanced chip production in Japan, it will establish advanced process capabilities in both the Americas and Asia. Regarding reports from Japanese media, TSMC clarified that the plans for a Japanese factory are based on information shared during a shareholders' meeting in early June, and no new updates are available at this time.
The construction of TSMC's new factory in Kumamoto, Japan, is progressing actively. TSMC holds the majority stake in the Kumamoto factory and has formed joint ventures with Sony Semiconductor Solutions Corporation and Denso Corporation, among others, to invest in subsidiary companies such as JASM. The factory's current focus is on mature special processes, including 22/28-nanometer and 12/16-nanometer technologies.
The Japanese government strongly supports TSMC's Kumamoto factory, resulting in an increase in capital expenditure from around $7 billion to $8.6 billion. Additionally, the monthly production capacity has been raised from the initial target of 45,000 wafers to 55,000 12-inch wafers. The factory is scheduled to be completed in September 2023, with production starting in April 2024 and shipments commencing from December of the same year.
The Japanese government is actively advocating for TSMC to introduce more advanced extreme ultraviolet (EUV) lithography equipment when expanding its operations in Japan. TSMC was the first company to commercialize the second-generation 7-nanometer process using EUV technology, and it is believed that the Japanese government is aiming to attract TSMC's production of sub-7-nanometer processes to Japan.
Many are interested to know whether TSMC will establish a second wafer fab in Japan. During a shareholders' meeting in June, TSMC Chairman Liu Deyin acknowledged the concerns of customers who feel that TSMC's production capacity in Japan is still insufficient. While TSMC is evaluating the possibility of introducing advanced processes, there are currently no concrete plans in place. TSMC's focus is on the ongoing construction of the Kumamoto factory, and discussions with the government regarding subsidies are still ongoing.
In addition, during TSMC's technology forum in Japan, Mr. Zhang Xiaqiang emphasized the company's progress in developing 2-nanometer chips for mass production by 2025. Over 80% of the research and development targets have already been achieved, with the yield rate of the 256Mb SRAM exceeding 50%.
Mr. Zhang also highlighted the growing demand for advanced technologies in the automotive industry, particularly in the areas of electric vehicles, ADAS, and autonomous driving. To address this, TSMC has introduced the "Auto Early" design platform suite, which will enable automotive customers to adopt 3-nanometer technology at least two years earlier.
