[News] TSMC’s JASM Kumamoto Plant 2 Greenlit, Construction Expected to Commence by Year’s End

TSMC officially gives the green light to the second fab in Kumamoto, Japan! On January 6th, TSMC, Sony Semiconductor Solutions Corporation (SSS), DENSO Corporation (DENSO), and Toyota Motor Corporation (Toyota) jointly announced further investment in TSMC’s Japanese subsidiary, Japan Advanced Semiconductor Manufacturing, Inc. (JASM).


The collaboration is expected to construct JASM’s second fab in Japan, dedicated to the 6/7-nanometer advanced process. The new facility is expected to commence operations by the end of 2027, with a total investment exceeding USD 20 billion, strongly supported by the Japanese government.

TSMC has stated that in this investment venture with JASM, TSMC, SSS, DENSO, and Toyota hold approximately 86.5%, 6.0%, 5.5%, and 2.0% of JASM shares, respectively. Toyota Motor Corporation is a new major shareholder following this capital increase, indicating its potential involvement in automotive electronics initiatives.

TSMC has further indicated that the construction of JASM’s second fab in Japan is set to commence at the end of 2024. The expansion in production capacity is expected to optimize overall cost structure and supply chain efficiency.

With two fabs in Kumamoto, TSMC anticipates in the press release that JASM’s total monthly production capacity will exceed 100,000 12-inch wafers, offering process technologies ranging from 40nm, 22/28nm, 12/16nm, to 6/7nm for automotive, industrial, consumer, and high-performance computing (HPC) applications. Capacity planning may be further adjusted based on customer demand.

For JASM’s first fab, it is planned to commence production by the end of the year. The initial facility, costing USD 8.6 billion, received subsidies of JPY 478 billion (approximately USD 3.23 billion) from the Japanese government.

The primary process of the first fab are 22/28nm and 12/16nm, with a monthly production capacity of around 50,000 12-inch wafers. Located in Kikuyo-cho, Kikuyo-gun, Kumamoto Prefecture, Kyushu, construction of the facility was announced in November 2021, ground was broken in April 2022, and construction was completed within two years.

JASM’s first fab is set to open on February 24, 2024, with mass production scheduled by the end of the year. The facility is a joint venture between Taiwan and Japan, with TSMC holding the majority of shares, Sony Semiconductor Manufacturing Corporation (SSMC) of Japan holding approximately 20%, and Toyota Group’s DENSO holding about 10%.

Read more


[News] TSMC Reportedly Announcing Kumamoto Plant 2 in Japan, while U.S. Subsidies Expected by End of March

While TSMC is pushing forward with its 2nm fab in Taiwan, there is also good news about its overseas expansion. According to the Japanese newspaper “Kumanichi,” TSMC is expected to announce the construction of its Kumamoto Fab 2 in Japan on February 6, with the possibility of incorporating the 7nm process. Additionally, the United States is also expected to provide several billion dollars in subsidies to TSMC’s new fab by the end of March.

▲ TSMC’s Layout of Global Production Capacity Edited by TrendForce, January, 2024

Per the report from the ” Kumanichi,” Japan’s Minister of Agriculture, Forestry, and Fisheries, Tetsushi Sakamoto, who hails from Kumamoto, stated during a local meeting on January 28th that TSMC is evaluating Kumamoto Prefecture’s Kikuyo Town as the location for its second fab. The announcement of the site for Fab 2 in Kumamoto is expected to be made as early as February 6th.

The report further indicates that Fab 2 is expected to be situated next to the first fab, which was completed at the end of last year. TSMC had previously mentioned that if a second fab were to be constructed, it would be located in the vicinity of the existing facility under construction.

Regarding the rumors, the spokesperson for TSMC stated that the expansion strategy of TSMC’s global manufacturing footprint is based on considerations of customer demand, business opportunities, operational efficiency, government support, and economic costs.

Through necessary investments, TSMC continues to support customer demands and respond to the structural growth of semiconductor technology in the long term. “We are currently focusing on evaluating the possibility of setting up a second fab in Japan, and there is no further information to share at the moment.”

During the recent earnings call, Mark Liu also mentioned that the plan for TSMC’s second fab in Japan is still under evaluation. However, he hinted at the possibility of adopting the 7-nanometer process.

TSMC’s Kumamoto plant is scheduled to hold its opening ceremony on February 24th. After retiring following the shareholders’ meeting in June this year, TSMC Chairman Mark Liu, along with the designated successor and current President C.C.Wei, will lead several top executives to Japan for the event. TSMC has also invited Japanese Prime Minister Fumio Kishida to attend.

The decision for TSMC to establish a plant in Kumamoto, Japan, was announced in October 2021, and construction began in 2022. In comparison to TSMC’s announcement of a plant in the United States in 2020, which faced delays and is set to commence production in 2025, the Japanese plant has advanced more swiftly.

This aligns with TSMC founder Morris Chang’s statement last year that Japan is considered an ideal location for establishing a semiconductor supply chain.

Analyst Joanne Chiao from TrendForce previously pointed out that Japan’s expertise in materials and machinery is one of the factors attracting TSMC’s expansion. Japan stands to benefit from TSMC’s establishment as the pace of creating a local semiconductor ecosystem by Japanese government surpasses that of the U.S. government.

On the other hand, despite TSMC delaying the production at its new US plant, according to Bloomberg, the United States plans to announce substantial chip subsidies by the end of March. The aim is to pave the way for chip manufacturers like TSMC and Intel by providing them with billions of dollars to accelerate the expansion of domestic chip production.

These subsidies are a core component of the US 2022 “CHIPS and Science Act,” which allocates a budget of USD 39 billion to directly subsidize and revitalize American manufacturing.

Read more

(Photo credit: TSMC)

Please note that this article cites information from Kumanichi and Bloomberg.


[News] Completion of TSMC’s Kumamoto Plant, Grand Opening on 2/24

TSMC’s foundry in Kumamoto, Japan, has been completed. Currently, the tool-in is underway, with a grand opening ceremony scheduled for February 24th, 2024.

Following this, trial production will commence, with mass production expected by the year-end. The Taiwanese semiconductor supply chain is optimistic about TSMC’s continued investment in local facilities, with plans for establishing service points in Japan.

According to reports from Japanese news source Kyodo News, TSMC’s Kumamoto plant is operated by its Japanese subsidiary, Jasm. Construction commenced in April 2022, with a 24-hour rush to completion. The office building facilities were inaugurated in August 2023, and the four-story, two-basement fab was also completed by the end of last year. The cleanroom’s total area, where production takes place, is approximately 45,000 square meters.

After the grand opening ceremony of TSMC’s Kumamoto plant, trial production will begin, with mass production scheduled by the end of this year. The plant aims to produce 22/28nm and 12/16nm process chips, targeting a monthly capacity of 55,000 wafers. Joint venture partners at the facility include Sony’s subsidiary Sony Semiconductor Solutions and Denso.

According to Japanese media Nikkei Asia, TSMC is currently assessing the construction of a second plant in Kumamoto. The estimated total investment for this new facility is around JPY 2 trillion, and the Japanese Ministry of Economy, Trade, and Industry is considering a subsidy of approximately JPY 900 billion, surpassing the amount for the first plant. TSMC plans to utilize the Kumamoto Fab 2 for the production of 6nm chips. There is potential for further investment in a third plant in the future.

As per a report from Liberty Times Net, with optimism for TSMC’s opportunities in Japan, Taiwan’s semiconductor supply chain is establishing service points in the country.

Cleanroom and MEP (Mechanical, Electrical, Plumbing) integration engineering service provider, Marketech International Corp., has set up a subsidiary in Japan to cater to major clients. Topco Scientific Co. has established SHUNKAWA CO., LTD. in Japan and a branch in Kumamoto to offer specialized chemical warehouse services to major clients.

Analytical testing facility, MA-tek, established a lab in Nagoya over four years ago and expanded with a second lab in Kumamoto last September due to increased demand. Following suit, MSSCORPS Co. plans to establish a testing and analytical center in Tokyo, Japan.

Read more

(Photo credit: TSMC)

Please note that this article cites information from Kyodo NewsNikkei Asia and Liberty Times Net


[News] Examining Japan through Semiconductor Foundries: Goals of TSMC’s and PSMC’s New Plants

In a bid to revitalize its semiconductor industry, Japan has enticed the sector with subsidies worth trillions of yen, aiming to attract both domestic and international semiconductor companies.

Leading semiconductor foundry Taiwan Semiconductor Manufacturing Co. (TSMC) has invested USD 8.6 billion to construct a factory in Kumamoto Plant, and it is considering building a second plant nearby. According to reports, TSMC is also contemplating a third plant within Kumamoto Prefecture to produce cutting-edge 3nm chips.

Apart from TSMC, major players like Samsung and Powerchip Semiconductor Manufacturing Corporation (PSMC) are actively investing in Japan. The initiatives of these giants have not only influenced semiconductor manufacturing equipment suppliers in Japan but also spurred them to accelerate technological research and expand production capacity.

As a result of these efforts, the investment of Japan’s six major semiconductor equipment suppliers has surged by 70% over the past five years.

TSMC Kumamoto New Plant Aims for Monthly Production of 55,000 12-Inch Wafers

Reportedly, the new chip plant in Kumamoto, Japan, operated by Japan Advanced Semiconductor Manufacturing (JASM), a joint venture between TSMC, Sony, and Denso, is poised for commencing production in the fourth quarter of 2024, while the plant’s production capacity will target a full capacity of 55,000 12-inch wafers per month.

Simultaneously, JASM aims to enhance the local contribution of semiconductor supply chain and ecosystem in Japan from the current 25% to 60% by 2030.

Meanwhile, according to sources cited by Bloomberg, TSMC has informed its supply chain partners that it is considering building a third factory in Kumamoto Plant in southern Japan, codenamed TSMC Fab-23 Phase 3.

TrendForce’s analysis mentioned that Japan’s expertise in semiconductor materials and machinery makes it an attractive location for TSMC’s expansion.

Additionally, Japan’s critical role in semiconductors and raw materials, coupled with collaboration with Sony, provides TSMC with significant advantages. TSMC’s investment in Japan is expected to facilitate access to advanced materials and expertise in CIS technology.

Furthermore, industry speculation suggests that in the future, Japan will not only continue subsidizing semiconductor manufacturing but also enhance collaboration between the semiconductor industry and academia to attract more talent to join the semiconductor industry.

PSMC Japanese Plant Aims for Monthly Production of 40,000 12-Inch Wafers

In late October, PSMC, in collaboration with SBI Holdings, Inc., the Miyagi Prefecture of Japan, and JSMC Corporation, signed a memorandum of understanding. The memorandum confirmed that JSMC’s first semiconductor wafer plant is expected to be located in the Second Northern Sendai Central Industrial Park in Ohira Village, Kurokawa District, Miyagi Prefecture (Second Northern Sendai Central Industrial Park).

The plant will produce 28nm, 40nm, and 55nm chips for automotive and industrial applications, with a planned monthly production of 40,000 12-inch wafers. Previous reports indicated that PSMC plans to construct multiple plants, with the first phase potentially starting construction as early as 2024, involving an investment of around JPY 400 billion (USD 2.6 billion).

The Japanese Ministry of Economy, Trade, and Industry (METI) is expected to provide up to JPY 140 billion in subsidies for the project, targeting operational commencement by 2026. The timeline and plans for the second phase are yet to be determined, with a total investment of approximately JPY 800 billion.

Regarding subsidies, PSMC stated that once Japan announces the subsidy amount for this semiconductor wafer plant investment, all relevant parties will reconfirm the effectiveness of this memorandum of understanding and proceed with the planned construction.

Is Foundry Revenue Expected to Continue its Upward Trend?

In the semiconductor industry chain, the significance of the foundry industry is self-evident. In recent years, the foundry sector has been affected by headwinds in end markets such as consumer electronics. However, as entering the latter half of the year, there are gradually emerging positive signals in the semiconductor industry.

According to TrendForce’s report on December 6th, looking ahead to 4Q23, TrendForce’s anticipation of year-end festive demand is expected to sustain the inflow of urgent orders for smartphones and laptops, particularly for smartphone components.

Although the end-user market is yet to fully recover, pre-sales season stockpiling for Chinese Android smartphones appears to be slightly better than expected, with demand for mid-to-low range 5G and 4G phone APs and continued interest in new iPhone models. This scenario suggests a continued upward trend for the top ten global foundries in Q4, potentially exceeding the growth rate seen in Q3.

According to the Semiconductor Equipment and Materials International (SEMI) report presented at SEMICON Japan 2023 on December 12, the global semiconductor equipment market is anticipated to experience a 6.1% year-on-year decline to USD 100.9 billion in sales for new equipment in 2023, marking the first contraction in four years.

However, the forecast for 2024 shows a reversal, with the semiconductor equipment market expected to grow by 4%, reaching USD 105.3 billion in sales. In 2025, a substantial increase of 18% is projected, surpassing the historical high of USD 107.4 billion in 2022.

SEMI CEO Ajit Manocha has noted that the semiconductor market exhibits cyclical patterns, with a short-term downturn expected in 2023. However, he anticipates a turning point towards recovery in 2024.

The year 2025 is poised for robust recovery, driven by increased production capacity, the construction of new wafer fabs, and growing demand for advanced technologies and solutions.

Major Companies Indirectly Boost Chip Equipment Investment in Japan, Surging 70% in 5 Years

According to a report by Nikkei, the proactive investments by semiconductor giants such as TSMC and Micron in Japan have accelerated technological innovations and production capacity expansion among Japanese chip equipment manufacturers.

The combined investment (including R&D and equipment investment) of Japan’s six major chip equipment firms, namely TEL, DISCO, Advantest, Lasertec, Tokyo Seimitsu, and Screen Holdings, for the fiscal year 2023 (April 2023 – March 2024) is approximately JPY 547 billion, marking a significant 70% increase compared to the 2018 fiscal year.

On December 13, Tokyo Electron Limited (TEL) President Tony Kawai stated at SEMICON Japan 2023 that the semiconductor market is projected to exceed USD 1 trillion by 2030, highlighting the immense potential within the industry.

On December 14, Hisashi Kanazashi, the Duputy Director at METI of Japan, noted that top overseas semiconductor firms plan to collaborate with Japan’s strength in “equipment” and expand their research and development presence in Japan.

Read more

(Photo credit: TSMC)


[News] TSMC’s Kumamoto Plant Production Capacity Set for Significant Leap, Gradually Increasing to 55,000 Wafers per Month

The new chip plant in Kumamoto, Japan, operated by Japan Advanced Semiconductor Manufacturing (JASM), a joint venture between Taiwan Semiconductor Manufacturing Co. (TSMC), Sony, and Denso, is poised for substantial capacity growth.

JASM President Yuichi Horita revealed that after commencing production in the fourth quarter of 2024, the plant’s production capacity will gradually ramp up, targeting a full capacity of 55,000 12-inch wafers per month.

Simultaneously, TSMC aims to enhance Japan’s semiconductor supply chain and ecosystem, looking to a 60% local contribution by 2030, a significant increase from the current 25%.

Yuichi Horita unveiled the latest plan for TSMC’s Kumamoto plant during his speech at the SEMICON Japan. He emphasized that TSMC’s Kumamoto plant is actively working to establish a local supply chain and ecosystem in Japan.

The current proportion of equipment and materials sourced from Japan for the Kumamoto plant is approximately 25%. The goal is to increase this to 50% by 2026 and achieve 60% by 2030. The progress in constructing production capacity, trial production, and mass production is in line with the original plan.

Yuichi Horita stated that the current workforce at the Kumamoto facility stands at 1,700 employees. Among them, around 600 are dispatched by TSMC and Sony, with the remaining being newly recruited staff.

The production capacity of the new Kumamoto plant primarily focuses on 28/22 nanometers and 16/12 nanometers. In the initial phase, the majority of the capacity is allocated to the manufacturing of Image Signal Processor (ISP) used in CMOS image sensors, as part of Sony’s outsourcing.

The remaining capacity is dedicated to automotive parts supplier Denso, where they outsource the production of automotive microcontroller unit (MCU), with Denso reportedly able to obtain approximately 10,000 wafers per month.

Reportedly, in industry analysis, although Japan’s recent performance in foundry has not matched that of Taiwan, South Korea, and China, Japan’s semiconductor equipment supply chain is already quite mature and comprehensive.

Major players in the field, such as Nikon in lithography equipment, and Hitachi High-Tech, renowned for etching equipment and critical dimension scanning electron microscopy (CD-SEM), have established dominance.

Additionally, Japanese companies specializing in chemical solutions, gases, and materials have also secured significant positions. All of these factors make them crucial partners for supporting the development of TSMC’s Kumamoto plant in the future.

Industry source suggests that in the future, the Japanese government will not only continue to subsidize semiconductor manufacturing but also strengthen collaboration between the semiconductor industry and academia to attract more talent into the semiconductor industry.

Read more

(Photo credit: TSMC)

Please note that this article cites information from UDN.

  • Page 1
  • 2 page(s)
  • 8 result(s)