[News] Kumamoto Vying for TSMC’s Third Fab, Looking to Build Semiconductor Hub

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Taiwan Semiconductor Manufacturing Company (TSMC) has planned to build two fabs in Kumamoto Prefecture, Japan. Kumamoto’s newly appointed governor, Takashi Kimura, who took office in April, stated in an report from Bloomberg on May 11th that he would spare no effort to persuade TSMC to establish a third fab in the region. He has already proposed a visit to TSMC’s headquarters in Taiwan this summer to discuss related matters, aiming to transform Kumamoto into a semiconductor hub.

TSMC has not responded to this matter. While TSMC’s third fab in Kumamoto, as mentioned by Governor Kimura, has not materialized yet, and TSMC has not officially announced it, Bloomberg previously reported that TSMC is considering building a third fab in Japan, which would also be located in Kumamoto and produce more advanced chips.

Regarding the rumored TSMC Kumamoto Fab 3, Takashi Kimura stated, “We are prepared to give our full support.” He expressed his hope to attract numerous semiconductor-related enterprises and research institutions to Kumamoto, aiming to establish an industrial cluster similar to Taiwan’s Hsinchu Science Park. He also hopes Kumamoto will become a birthplace for various industries stemming from semiconductors, including AI, data centers, and autonomous driving technologies.

Kimura believes that during the preparations for TSMC’s first fab in Kumamoto, the region already possesses better-quality road and water infrastructure and an education system that better supports international school students, which could be advantageous.

TSMC’s Kumamoto Fab 1, a joint investment between TSMC, Sony Semiconductor Solutions Corporation, and Denso Corporation, was inaugurated in February. TSMC stated in an earlier press release that in response to customer demand, construction of the second JASM (TSMC’s majority-owned manufacturing subsidiary in Kumamoto Prefecture) fab is slated to begin by the end of 2024. The expansion of production capacity is also expected to optimize the overall cost structure and supply chain efficiency of JASM, with operations starting by the end of 2027.

In the future, the two fabs under JASM will enable a total monthly production capacity of over 100,000 12-inch wafers, providing 40-nanometer, 22/28-nanometer, 12/16-nanometer, and 6/7-nanometer processes for automotive, industrial, consumer, and high-performance computing (HPC) applications.

Capacity planning may be adjusted according to customer demand, with the Kumamoto fab directly creating a total of over 3,400 high-tech job opportunities. Through the investment, TSMC, Sony Semiconductor, Denso Corporation, and Toyota Motor Corporation hold approximately 86.5%, 6.0%, 5.5%, and 2.0% of the JASM shares, respectively.

The Kyushu Economic Research Association estimates that these fabs will contribute JPY 10.5 trillion (USD 67.4 billion) to the economy of Kumamoto Prefecture over the next decade.

 

Read more

• [News] Latest Overview on TSMC’s Global Expansion Initiatives
• [News] Rumored to Build Third Plant in Kumamoto, TSMC: Currently Focusing on Assessing the Construction of a Second Plant

(Photo credit: TSMC)