TSMC is ready to build a third plant in Japan, but not this decade

A joint venture between TSMC, Sony and Denso, called JASM, is set to begin operations next quarter in Japan’s Kumamoto Prefecture. Plans for the construction of a second enterprise by 2027 have already been approved, but so far only unofficial sources have mentioned the possibility of a third enterprise. Among them, the Minister of Economy, Trade and Industry of Taiwan was recently noted.

Image Source: TSMC

As Kyodo News notes, Minister Kuo Jyh-huei made his comments on this topic during his visit to the Japanese capital at the end of August. In Tokyo, a Taiwanese official took part in a conference organized by representatives of the local semiconductor industry. In an interview with Kyodo News, the minister admitted that TSMC plans to build a third plant in Japan, but after 2030. However, he did not specify in which area the new plant for contract manufacturing of chips will be located. He simply noted that he did not know whether the plant would be located in Kumamoto Prefecture next to the two others that would be operating in the region by then.

According to Kyodo, Kumamoto Prefecture Governor Kei Kimura visited TSMC headquarters last month to hold talks about the possibility of building a third facility in the region. To finance these projects, the Japanese authorities have so far willingly allocated subsidies in an uncharacteristic proportion, so if the favorable policies of local authorities continue, TSMC may decide to build a third enterprise if the local infrastructure allows it to be built without much effort.

Let us remind you that the first JASM enterprise will produce chips in a range of technological processes from 28 to 12 nm, the second should master the range from 40 to 6 nm. Thus, if TSMC will build a third plant in the next decade, it will certainly be with an eye to mastering more advanced lithography. By that time, an enterprise of the Japanese corporation Rapidus should begin operating on the island of Hokkaido, expecting to master the production of 2nm products from 2027.

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