TSMC prepares to disembark in Japan. The world’s largest semiconductor manufacturer confirmed in October that it will install its first plant for the production of chips in that country. And in the last hours something was known that was – basically – an open secret: Sony’s involvement.
The Japanese corporation announced that will invest 500 million dollars at TSMC’s new chip factory, as published Reuters. This confirms what had already been speculated prior to the formalization of the arrival of the Taiwanese. It is worth noting that, beyond its financial contribution to the project, Sony will not have more than a 20% stake in the joint venture. The total cost of building the factory will be around $ 7 billion.
Another important point in this story is that the government of Japan will also sponsor the arrival of TSMC. The semiconductor maker indicated that the Japanese authorities will provide “strong support” but has not yet mentioned the existence of economic incentives. In any case, Nikkei Asia ensures that there will be millionaire subsidies in favor of this initiative, through a new program. It would contemplate the fulfillment of certain conditions, such as prioritizing attention to the demand of local companies.
With its new chip factory in Japan, TSMC expects to create 1,500 high-tech professional jobs. Once up and running, the plant will have a monthly production capacity of 45 thousand 12-inch semiconductor wafers. They are expected to be developed with 20 to 28 nanometer technology, which, although not the most advanced, would be sufficient to supply the automotive and consumer electronics industries.
Sony, a key player in the arrival of TSMC to Japan
That Sony contributes 500 million dollars for the new chip factory of TSMC is not accidental; especially if we consider that it is the main Japanese client of the Taiwanese company. The joint-venture will bear the name of Japan Advanced Semiconductor Manufacturing and the plant will be operated by Sony Group.
Another not minor detail is that it will be built near the Sony facilities in Kumamoto prefecture. TSMC’s first factory in Japan is expected to begin installation in 2022, and production to go live. only at the end of 2024. Clearly, the goal of this project is not to solve the current semiconductor shortage, but to help prevent future crises.