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TSMC is based in Hsinchu, Taiwan.
New Delhi
CNN
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Semiconductor giant Taiwan Semiconductor Manufacturing Company (TSMC) is increasing production in Japan as it continues to expand its global presence.
TSMC, the world's largest chipmaker, will build a second semiconductor manufacturing plant (fab) in the country “in response to growing customer demand,” it said in a statement on Tuesday.
Japan Advanced Semiconductor Manufacturing (JASM), a majority-owned subsidiary of TSMC, added that it plans to begin construction by the end of 2024. The facility is expected to be operational by the end of 2027.
Together with JASM's first factory, which is scheduled to start operating this year, the total investment in Japan will exceed $20 billion “with the strong support of the Japanese government,” the statement said. Toyota Motor Corporation (TM) and Sony (SONY) are also investors in the venture.
Together, the factories will create approximately 3,400 skilled jobs, according to TSMC. The increase in production in Japan comes as the chipmaker faces delays to a project in Arizona.
The company has announced that it will build a second semiconductor factory in the southwestern US state in 2022, in addition to plans for an existing factory, increasing its total investment in Arizona from $12 billion to $40 billion.
The investment was previously hailed by US President Joe Biden as a sign that US manufacturing is “back”.
However, TSMC announced earlier this year that the facility would start operations in 2027 or 2028, compared to previous expectations of 2026.
TSMC, based in Hsinchu City, Taiwan, produces an estimated 90% of the world's ultra-advanced semiconductors and supplies global tech giants such as Apple (AAPL) and Nvidia (NVDA).
We mass produce the parts essential to the operation of everything from smartphones to washing machines.
The company has typically maintained state-of-the-art manufacturing within Taiwan, but commercial pressures and encouragement from many governments have led it to expand overseas in recent years. Last year, it announced that it would establish its first European factory in Dresden, Germany.
