Taiwan Semiconductor Manufacturing Co Ltd (TSMC) has announced plans to build a second chip manufacturing factory in Japan, increasing its investment in the country to $20 billion. The decision comes amidst a global shortage of semiconductors, with TSMC looking to expand its production capacity to meet the growing demand.
The new facility will be located in Kumamoto Prefecture and is expected to start operations by 2024. TSMC has chosen Japan as a strategic location for its expansion due to the country’s robust demand for advanced chips used in automobiles, smartphones, and other electronic devices.
TSMC is the world’s largest contract chipmaker and a key supplier for tech giants such as Apple and Qualcomm. The company’s decision to invest in Japan reflects its commitment to strengthening its presence in key markets and ensuring a stable supply chain for its customers.
The investment is expected to create thousands of jobs in Japan and provide a boost to the local economy. It also highlights TSMC’s long-term strategy to diversify its production capacity and reduce reliance on its main facilities in Taiwan.
TSMC’s expansion comes at a time when global chip shortages have disrupted various industries, leading to production delays and supply chain challenges. By increasing its investment in Japan, TSMC aims to address these issues and contribute to the stability of the semiconductor market.
Overall, the construction of a second chip factory in Japan is a significant milestone for TSMC and underscores the company’s commitment to innovation, growth, and meeting the increasing demand for advanced chips globally.
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