Akihabara News (Tokyo) — Taiwan Semiconductor Manufacturing Company (TSMC) has announced that it will build a microchip manufacturing plant in Kumamoto, Japan.
The Taiwan tech giant will lead an approximately US$7 billion investment in establishing a new subsidiary, Japan Advanced Semiconductor Manufacturing (JASM).
Sony announced it will inject US$500 million into the project in exchange for 20% of JASM’s shares.
The construction of the new manufacturing plant in Kumamoto Prefecture is expected to begin next year and is estimated to start operating in 2024.
JASM will focus on producing 22-nanometer and 28-nanometer chips, which are mainly used for producing consumer electronics products. The plant is expected to create around 1,500 new job opportunities for the local community.
Hiroki Totoki, CFO of Sony, commented that the partnership between Sony and TSMC would “ensure the stability of semiconductor supply” for Sony’s products, especially with the current fierce competition over semiconductors around the globe.
However, since 22-nanometer and 28-nanometer chips are the older models within the TSMC’s product line, and some critics are not pleased to see their government accepting the deal, which will be heavily subsidized by public funds.
Apart from Japan, TSMC has promised to spend US$100 billion over the next three years to expand chip capacity, and it is building a US$12 billion chip fabrication plant in the US state of Arizona.
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