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Chip Shortage: TSMC’s Second Plant Announced in Japan to Produce 12-nanometer in 2026

Yusuf Balogun
Yusuf Balogun
Yusuf is a law graduate and freelance journalist with a keen interest in tech reporting.

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The global semiconductor shortage has emerged as a significant challenge affecting various industries worldwide. Factors contributing to the shortage include increasing demand for electronic products, the COVID-19 pandemic, limited supply, and the ongoing trade war between the US and China.

This shortage has had a profound impact on the automotive, consumer electronics, and technology sectors, among others, with most companies recording low profits and revenue. Recently, Samsung Electronics has estimated that its operating profit for the second quarter will likely fall by 96% due to the continued decline in chip prices.

In response to some of these challenges, the world’s largest semiconductor manufacturer, TSMC, has announced the construction of its second plant in Japan. According to the chip maker, TSMC’s second plant is expected to start construction in April next year and start producing 12-nanometer process chips in 2026.

TSMC’s Second Plant in Japan

As reported by Japanese media, TSMC is considering the construction of its second Japan plant near Kiyocho, Kumamoto Prefecture, with an estimated budget to exceed 1 trillion yen. Meanwhile, the media outlet also noted that TSMC is building a semiconductor factory, expected to start production in December 2024.

In a press conference held after TSMC’s shareholder meeting on June 6, Liu Deyin, chairman, said the TSMC’s second plant in Japan that is being considered is “still in the stage of land acquisition, but it should be located close to the first factory.” He pointed out that “the Japanese government hopes that TSMC will build a second factory, and the subsidy is still in the evaluation stage.

Production at TSMC’s Kumamoto factory, the company’s first in Japan, is anticipated to begin in December 2024. With a monthly manufacturing capacity of 55,000 pieces, it is currently preparing to manufacture 22/28 nanometer and 12/16 nanometer process chips.

Japan Advanced Semiconductor Manufacturing (JASM), a foundry service subsidiary established in Kumamoto Prefecture, operates TSMC’s Kumamoto facility. JASM has received investments from Toyota, the leader in the Japanese auto industry, group companies affiliated with Sony Semiconductor Solutions, and Denso, a significant producer of auto parts in Japan.


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