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TSMC’s Kumamoto Plant to Revitalize Japan’s Semiconductor Supply Chain

Taiwan
Japan
t 2330.TW s 6758.TSE t 7203.TSE d 6902.TSE Blue Chip 150 Semicon 75 Tech 350
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TSMC (Taiwan Semiconductor Manufacturing Company) is set to play a pivotal role in reshaping Japan’s semiconductor landscape with its latest venture, the Japan Advanced Semiconductor Manufacturing (JASM). According to JASM President Yuichi Hotta, the construction of the Kumamoto facility is progressing smoothly and nearing completion, with equipment installation slated to begin in October.

This development marks a significant step in bolstering Japan’s semiconductor supply chain. The Kumamoto factory is not just a technological powerhouse but also a hub for local collaboration. TSMC has expanded its network to include 120 Japanese companies, augmenting its original supplier base. As a result, the local procurement ratio in Japan currently stands at about 25%, with ambitious targets set to increase this to 50% by 2026 and further to 60% by 2030.

Yuichi Hotta recently shared these insights at the Japan International Semiconductor Exhibition “SEMICON Japan 2023”. He highlighted the scale of the project, noting that at its peak, about 6,000 workers were involved in constructing the factory. This extensive workforce reflects the significance of the Kumamoto plant in Japan’s industrial fabric.

The Kumamoto factory, poised to commence mass production by the end of 2024, will specialize in producing 22/28 nanometer (nm) and 12/16 nm process wafers. Its projected monthly production capacity is an impressive 55,000 wafers. The factory’s operations are backed by strategic partnerships with major industry players, including Sony Semiconductor Solutions, a subsidiary of Sony, the Toyota Group, a leading name in the automotive sector, and Denso, a major Japanese auto parts manufacturer.

TSMC’s initiative with the Kumamoto plant is more than just a manufacturing expansion; it represents a concerted effort to rejuvenate Japan’s semiconductor industry. By increasing local procurement and forging key partnerships, TSMC is positioning the Kumamoto facility as a cornerstone for technological innovation and supply chain resilience in Japan.

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