TSMC Builds Chip Factory In Japan, But Technology Lags One Generation From Taiwan

TSMC wants to build a chip factory in Japan. (photo credit: pixabay)

JAKARTA - Taiwan Semiconductor Manufacturing Co Ltd has received approval to set up a chip factory in Japan This was confirmed by the Taiwan Investment Commission of the country's Ministry of Economic Affairs, which approved the investment, Monday, December 20.

As reported by Reuters, the world's No.1 chipmaker, TSMC, earlier said last month it would build a $7 billion chip factory in Japan with the Sony Group.

"The technology to be used in TSMC's new plant in Japan lags behind what has been implemented in Taiwan for at least a generation or so. There is no doubt about the outflow of high-end technology," the investment commission said in a statement.

Taiwan's tech powerhouse, home to chipmakers such as TSMC, has been front and center of efforts to tackle a chip shortage that has shut several auto production lines and impacted consumer electronics makers around the world.

TSMC, a major supplier of chips to Apple, manufactures some of the world's most advanced semiconductors.