A full view shows the new semiconductor factory of Japan Advanced Semiconductor Manufacturing Company (JASM), a subsidiary of Taiwanese chip giant Taiwan Semiconductor Manufacturing Company (TSMC), located in Kikuyo, Kikuchi-ku, Kumamoto Prefecture, February 14, 2024. (Photo credit: Philip FONG / AFP) (Photo credit: PHILIP FONG/AFP via Getty Images)
Philip Fong | Afp | getty images
Taiwan Semiconductor Manufacturing Company The company opened its first chip factory in Japan on Saturday, diversifying its supply chain from Taiwan amid deepening U.S.-China trade tensions.
TSMC, the world's largest contract chip manufacturer whose customers include Nvidia and Apple, has received requests to establish local operations from several countries, including the United States and Europe.
Paul You, chairman of First Securities Investment Corporation, said last month that the U.S.-China chip war could put the global semiconductor industry, including Taiwan's, at risk.
“We believe that the escalation between the US and China, especially the chip war, will only increase and this will hamper global semiconductor growth. [industry]“You said.
The Japanese chip manufacturing plant, located in Kumamoto, will cover an area of about 45,000 square meters and feature a cleanroom, a controlled, sterilized environment essential for chip manufacturing, and is expected to begin production by the end of 2024, TSMC said.
Japan Advanced Semiconductor Manufacturing Inc., a manufacturing company majority-owned by TSMC, began construction of the plant in April 2022.
JASM was established in Japan in 2021 with support from the Japanese government, Sony Semiconductor Solutions and Japanese auto parts manufacturer Denso Corporation to promote the growth of Japan's semiconductor ecosystem.
Japan has been focusing on strengthening its semiconductor position amid fierce competition from key chip manufacturing countries such as Taiwan and Korea. China's chip manufacturing industry is a decade behind world leaders TSMC and Samsung, according to an August report from the Center for Strategic and International Studies.
Earlier this month, TSMC, Sony Semiconductor Solutions and automakers Toyota and Denso announced additional investments in JASM to build a second chip manufacturing plant, with construction expected to begin by the end of the year and 2027. It is scheduled to operate until the end of the year.
The two plants, which are expected to directly create more than 3,400 high-tech jobs, will bring the Japanese government's investment in JASM to a total of more than $20 billion.
TSMC's two plants in Japan will focus on producing semiconductors for automotive, industrial and consumer use and meeting high-performance computing needs.
The company is also building one of its largest overseas projects, investing $40 billion in two chip manufacturing plants in Arizona to meet annual demand in the United States.