TSMC Kumamoto Plant: 60% Local Procurement Target

In a recent update from Nikkei News, Taiwan Semiconductor Manufacturing Company (TSMC) has made significant progress in the construction of its inaugural wafer fabrication plant located in Kumamoto Prefecture, Japan. During the "SEMICON Japan 2023" international semiconductor exhibition, Mr. Yuichi Horita, President of TSMC's subsidiary, Japan Advanced Semiconductor Manufacturing (JASM), disclosed that the construction of the Kumamoto facility is nearing completion. TSMC's objective is to elevate its local procurement ratio in Japan to 60% by the year 2030.

Mr. Horita conveyed, "The JASM construction is adhering closely to the anticipated timeline and is on the verge of completion." Notably, at its peak, the construction phase involved the collaboration of approximately 6,000 workers. Commencing from October, the installation of manufacturing equipment and related connectivity processes have been underway. The new plant is poised to initiate mass production in the fourth quarter of 2024, with a gradual scale-up plan aiming to achieve a monthly output of 55,000 12-inch wafers.

Regarding the supply chain, Mr. Horita emphasized the addition of 120 new Japanese companies as suppliers, supplementing TSMC's existing supplier network. This strategic move leverages Japan's robust presence in the semiconductor equipment and materials sector. Presently, the local procurement ratio in Japan stands at approximately 25%, with projections to increase to 50% by 2026 and a further rise to 60% around the year 2030.

Despite the comprehensive update, Mr. Horita did not touch upon the prospect of an opening ceremony for the new facility. Similarly, details concerning the evaluation of TSMC's second wafer fabrication plant in Kumamoto were not expounded upon. Earlier reports hinted at the prospect of an opening ceremony for the TSMC Kumamoto plant in February 2024, potentially featuring announcements related to the second wafer fabrication plant.

As per available data, the TSMC Kumamoto plant anticipates commencing production by the end of 2024. The facility will focus on producing chips using 22/28nm and 12/16nm processes, with a monthly production capacity of 55,000 wafers. Participation in JASM's investments extends to subsidiaries of Sony, including Sony Semiconductor Solutions, alongside leading Japanese automotive company Toyota and major automotive components manufacturer Denso.