35 Supply Chain Titans Follow TSMC to Japan

In a recent report released on September 7th, it was disclosed that Mr. Yang Mingxiang, the General Manager of CITIC Bank, has highlighted a significant development in the global semiconductor industry. This development is driven by factors such as supply chain restructuring and geopolitical tensions. Notably, Japan and other countries have been actively competing to attract renowned semiconductor manufacturers, specifically TSMC (Taiwan Semiconductor Manufacturing Company) and UMC (United Microelectronics Corporation), to establish manufacturing facilities on their soil. As of now, we are aware that a substantial number of companies within the semiconductor supply chain, approximately 35, are either in the planning stages or have already initiated their investment journey in line with TSMC's expansion into Japan.

Mr. Yang Mingxiang is particularly bullish on the prospects of TSMC's new manufacturing facility in Kumamoto, Japan, as a catalyst for drawing further investments by global corporations. He emphasized that "the Japanese government has set ambitious policy goals, aiming to triple semiconductor production value by 2030, compared to the levels witnessed in 2020, ultimately reaching a remarkable 15 trillion yen. Consequently, Japan has proactively courted TSMC to establish manufacturing operations within its borders, including TSMC's notable joint venture with Sony in Kumamoto."

As per available information, TSMC's first Japanese manufacturing facility is projected to commence production towards the end of 2024. Mr. Liu Deyin, Chairman of TSMC, has stated that the land currently acquired by the company is designated exclusively for the first facility. Meanwhile, land acquisition processes are still underway for the second facility, and indications suggest that it will also be located in Kumamoto. In response to the demand from numerous clients for TSMC's mature process capabilities, the second Japanese facility is likely to focus primarily on mature processes, with no immediate plans for integrating advanced process technologies.

Recent details regarding the second TSMC facility in Japan have emerged, indicating that construction is scheduled to commence in April 2024, with production slated to begin by the end of 2026. The estimated total investment for this endeavor exceeds one trillion yen, with a primary emphasis on manufacturing 12nm process chips. This development is poised to have far-reaching implications for stakeholders across the semiconductor industry.