TSMC's $10.5B Investments in US and Japan Approved

On June 27, Taiwan's Ministry of Economic Affairs (MOEA) Investment Commission approved four major investment projects totaling approximately USD 10.511 billion. Among these, TSMC (Taiwan Semiconductor Manufacturing Company) received approval for a USD 5.26 billion capital increase in its Japanese subsidiary, Japan Advanced Semiconductor Manufacturing (JASM), marking TSMC's first capital infusion into its Kumamoto second plant. Additionally, TSMC will increase its investment in its US subsidiary, TSMC Arizona Corporation, by USD 5 billion, bringing the total investment in the US subsidiary to USD 16.5 billion.

TSMC's investment in Japan aims to establish a new 12-inch wafer plant (Kumamoto second plant) to produce 6/7nm, 12/16nm, and 40nm process products. This is the company's first capital increase application for the Kumamoto second plant, following an earlier USD 2.12 billion investment in the Kumamoto first plant approved by the Investment Commission.

In the US, TSMC's capital increase will fund the construction of a second-phase 12-inch wafer plant, focusing on 2nm and 3nm process technologies. Combined with the previously approved USD 11.5 billion investment, TSMC's total investment in its US plant reaches USD 16.5 billion.

The MOEA highlighted that TSMC's most advanced processes, research centers, and substantial production capacities remain in Taiwan, where the company continues to advance next-generation process technology research and development. The approved capital increases will strengthen collaboration with local supply chain partners, attract top talent, and enhance Taiwan's technical reserves, benefiting the island's semiconductor industry and boosting its global competitiveness in the long run.

In addition, Walsin Lihwa Corporation's USD 160 million capital increase in its Singapore subsidiary, Walsin Singapore Pte. Ltd., to expand its investment holding operations, and Lite-On Technology Corporation's USD 89.388 million investment in Japan's COSEL Co., Ltd., for the production and sale of electronic and power equipment, were also approved.