Taiwanese chip company TSMC is considering building a third factory in Japan. The company wants to produce modern 3-nanometer chips at the new location, reports Bloomberg news agency, citing unofficial circles. This could make Japan a major global chip manufacturing center. The start of construction and the costs for the factory are still unclear; TSMC has not confirmed the information.
The 3-nanometer process is the most modern chip manufacturing technology currently available on the market. According to Bloomberg, a factory with the technology would require around 20 billion dollars (18.3 billion euros) in investments. By the time TSMC’s potential factory comes online, however, the technology will likely be a generation or two ahead.
Big win for Japan
If the plan goes through, it would be a major victory for Japan: Prime Minister Fumio Kishida’s government has doled out trillions of yen in subsidies to attract investment from domestic and foreign semiconductor companies. In addition to TSMC, Tokyo has secured investments from Micron Technology, Samsung Electronics and Powerchip Semiconductor Manufacturing.
Japan is making faster progress in establishing a domestic semiconductor market than the US, which is also looking to build domestic capabilities for economic and security reasons. TSMC is currently building its first factory in Japan, which is expected to start producing 12-nanometer chips in late 2024. According to sources, a second factory will start producing 5-nanometer chips in 2025.
EU dependent on imports
According to experts, the German and European economies are also exposed to significant risks if these components are completely dependent on foreign imports. In addition to Japan, TSMC has also agreed to build two factories in the US and one in Germany.
Given the increasing geopolitical uncertainties in the Taiwan Strait, many countries would like to see a broader supply of semiconductors. TSMC is the global market leader in the sector and the preferred chip manufacturer of Nvidia and Apple, among others.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
