Japan bolsters chip supply with TSMC factory
Efforts to secure domestic chip production see TSMC expanding in Japan, as the nation seeks to mitigate supply chain risks and boost economic resilience amid rising global tensions.
Taiwan Semiconductor Manufacturing Co (TSMC) has commenced mass production at its first factory in Kumamoto Prefecture, Japan. The facility manufactures 12 to 28-nanometer chips used in cars and image sensors, serving clients such as Sony Group and Denso Corp. Strengthening supply chains for critical goods is a priority for Japan, which views domestic chip production as vital for economic security amid geopolitical tensions.
TSMC plans a second factory in Kumamoto to produce advanced 6-nanometer chips, with construction set to begin by March 2025 and operations expected by late 2027. The Japanese government has pledged over 1 trillion yen in subsidies to support these initiatives, highlighting the strategic importance of reducing dependence on Taiwan’s chip supply.
Kumamoto Governor Takashi Kimura has also urged TSMC to consider a third plant in the prefecture, reflecting the region’s commitment to becoming a hub for semiconductor production. These developments underscore Japan’s determination to secure its technological future.
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