Taiwan Semiconductor Manufacturing Co. (TSMC) is expanding its output in Japan with plans to build a second chip fabrication plant, a major victory for Prime Minister Fumio Kishida as his government seeks to boost domestic chip production.
The world’s largest contract chipmaker said that Toyota will also be joining as a new investor of Japan Advanced Semiconductor Manufacturing (JASM), TSMC’s majority-owned manufacturing subsidiary in Kumamoto Prefecture. The TSMC board approved an injection of no more than $5.26 billion in JASM, though it was not immediately clear how those funds would be used.
The facility will be close to the first TSMC plant in the Kumamoto Prefecture town of Kikuyo. TSMC said in a statement Tuesday that it would be adding 6/7 nanometer process technology, advancing the technology produced on that campus.