TSMC's Japan Fab Begins Chip Production: A Major Step in Overseas Expansion

TSMC's new fab in Kumamoto, Japan has begun mass production of chips, marking a significant milestone in its overseas expansion.

TSMC has commenced mass production at its new fab in Kumamoto, Japan, a significant milestone in advanced chip manufacturing for the country and the company's first major overseas expansion in years, according to a report by Nikkei. This facility, operated by Japan Advanced Semiconductor Manufacturing (JASM), will produce chips using a variety of process technologies for TSMC's key Japanese clients, reports DigiTimes.

TSMC's Japan Fab Begins Chip Production: A Major Step in Overseas Expansion

Key Highlights

Here are the key details about the new TSMC fab:

  • First FinFET Logic Chips in Japan: This is the first time logic chips with FinFET transistors have been manufactured in Japan.
  • Production Capacity: The fab can process up to 55,000 300-mm wafers per month.
  • Process Technologies: The plant uses TSMC's 40 nm, 28 nm, 22 nm, 16 nm, and 12 nm-class process technologies.
  • Target Applications: The fab will focus on automotive and consumer electronics components.
  • Significant Investment: TSMC, its partners, and the Japanese government invested approximately $8.27 billion in JASM.

Investors

The major shareholders in JASM are:

  • TSMC (86.5%)
  • Sony Semiconductor Solutions (6.0%)
  • Denso (5.5%)
  • Toyota (2.0%)

Future Expansion

TSMC has plans for a second fab at the Kumamoto site, with construction starting in early 2025. This second facility will produce chips using TSMC's 6nm and 7nm-class technologies and is expected to begin operations by the end of 2027. The total production capacity of both facilities is projected to surpass 100,000 wafers per month, with a total investment of around $20 billion.

Potential Third Fab

Kimura, the governor of Kyushu Island, has expressed interest in attracting a third TSMC fab to the region, which could potentially produce 5nm or even 3nm chips. However, this depends on the success of the first two fabs and addressing challenges like traffic and water management.

TSMC's Global Expansion

The Kumamoto fab is a significant milestone in TSMC's expansion beyond China, following its WaferTech facility in the early 2000s and Fab 16 in Nanjing in the 2010s. TSMC is also planning to begin production of 4nm and 5nm-class chips at its Fab 21 near Phoenix, Arizona and expand its facilities in Dresden, Germany for automakers using 12nm, 16nm, 22nm and 28nm process technologies.

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