TSMC Desperate to Build a Second Factory in Japan, Spending IDR 112 Trillion!

Semiconductor Manufacturing Company (TSMC) aiwan is now planning to build a second chip factory in Japan. (photo: dock.tsmc)

JAKARTA - After expanding its wings in the United States (US), Taiwan Semiconductor Manufacturing Company (TSMC) is now planning to build a second chip factory in Japan.

The chipset giant will spend around 7.4 billion US dollars, equivalent to IDR 112 trillion, to produce 5 and 10-nanometer chips, which will start in 2025.

According to a report by the Nikkan Kogyo newspaper, the factory itself will be located in the southwestern region of Kumamoto, Japan.

TSMC's decision could certainly help Japan revive advanced semiconductor manufacturing, and is seen as a key requirement for future economic growth driven by new digital technologies.

However, it declined to comment on this matter, referring to a statement from TSMC CEO CC Wei on its last quarterly earnings call in January.

Where the company is considering building a second factory in Japan and says there is nothing more to add.

Currently, TSMC is building its first foundry in Japan on Kyushu Island, with the production of 12 and 16-nanometer semiconductors scheduled to start next year.

The Japanese government has offered subsidies of 476 billion yen to TSMC or about half of the factory's estimated cost.

Sony Group Corp and auto parts maker Denso Corp will use its chips, and they are also investors in TSMC, as quoted by Reuters, Monday, February 27.

For information, TSMC has expanded its business outside of Taiwan, such as in the US, Europe and Japan. This expansion is also expected to be supported by subsidies offered by host countries, which seek to reduce their dependence on China.