TSMC’s JASM Expansion in Kumamoto Japan Signals Promising Growth in Semiconductor Industry

TSMC, SSS, DENSO, and Toyota announce plans for a second fab in Japan, with a total investment of over $20 billion, to meet increasing customer demand and boost the local economy.

Significant investment of over $20 billion
Creation of over 3,400 high-tech professional jobs
Flexible capacity plan to meet customer demand

In a joint announcement today, TSMC, Sony Semiconductor Solutions Corporation (SSS), DENSO Corporation, and Toyota Motor Corporation revealed their plans for further investment into Japan Advanced Semiconductor Manufacturing, Inc. (JASM). JASM, which is a majority-owned manufacturing subsidiary of TSMC, will be constructing a second fab in Kumamoto Prefecture, Japan. This new facility is expected to begin operations by the end of 2027.

Toyota will also be taking a minority stake in JASM, joining the other three companies in their commitment to this venture. With the support of the Japanese government, the overall investment in JASM will exceed a whopping $20 billion.

The decision to build a second fab comes as a response to the increasing demand from customers. JASM plans to commence construction by the end of 2024, aiming to not only meet this demand but also improve its cost structure and supply chain efficiency. The second fab, combined with the first one set to begin operations in 2024, will give JASM’s Kumamoto site a total production capacity of over 100,000 12-inch wafers per month. These wafers will be utilized for various applications including automotive, industrial, consumer, and high-performance computing.

The capacity plan is flexible and can be adjusted based on customer demand. The Kumamoto site is expected to create more than 3,400 high-tech professional jobs directly, further boosting the local economy.

Upon completion of the transaction, TSMC will hold the majority stake of approximately 86.5% in JASM, while SSS, DENSO, and Toyota will hold stakes of 6.0%, 5.5%, and 2.0% respectively. The closing of the transaction is subject to customary closing conditions.

This strategic move by TSMC, SSS, DENSO, and Toyota highlights their commitment to expanding semiconductor manufacturing capabilities in Japan. With the increasing demand for advanced semiconductor technologies, this investment will not only benefit the companies involved but also contribute to the growth of the overall industry.

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Background Information

About Sony:

Sony Corporation, a global conglomerate for its diverse range of innovative consumer electronics and entertainment products, has also made significant strides in the realm of computer products. Leveraging its expertise in engineering and technology, Sony has introduced laptops, tablets, and accessories that blend sleek design with robust performance. These computer products bear the hallmark of Sony's commitment to quality and innovation, catering to both casual users and professionals seeking powerful computing solutions. With a history of pushing technological boundaries, Sony's computer products showcase its dedication to creating devices that seamlessly integrate into modern lifestyle

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About TSMC:

TSMC, or Taiwan Semiconductor Manufacturing Company, is a semiconductor foundry based in Taiwan. Established in 1987, TSMC is a important player in the global semiconductor industry, specializing in the manufacturing of semiconductor wafers for a wide range of clients, including technology companies and chip designers. The company is known for its semiconductor fabrication processes and plays a critical role in advancing semiconductor technology worldwide.