July 15, 2024
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TSMC announced today that it is partnering with Sony on its new $7 billion chip factory in Japan. The new plant will focus not on cutting edge chips but rather older 22nm and 28nm processes in an effort to meet supply shortfalls for older chips have has steadily impacted everything from cars to smartphones.

The new factory was announced last month by TSMC CEO C.C. Wei, although at the time, it had yet to be approved by TSMC’s board of directors. 

Nikkei reports that the board has now approved the new factory under a new subsidiary, Japan Advanced Semiconductor Manufacturing, Inc. (JASM). Sony’s semiconductor group will invest approximately $0.5 billion in the new subsidiary for less than 20 percent equity in JASM.

The report also notes that TSMC’s board also approved plans to build a new fab in Taiwan that would focus on both advanced 7nm chips, as well as legacy 28nm products, although construction isn’t set to begin until 2024.

The new expansions are part of TSMC’s ambitious plans to invest $100 billion through 2023 to build out its chipmaking capabilities even further.

The new $7 billion Japan fab, along with the already planned $12 billion manufacturing hub in Arizona, would help to expand TSMC’s reach to new countries, even as the new Taiwan facility continues to shore up its domestic capacity.

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