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TSMC plans to build a third factory in Japan to produce 3-nanometer chips
2023-11-22

According to insiders, TSMC is considering building a third chip factory in Japan to produce advanced 3-nanometer chips; This may make Japan an important global chip manufacturing center. Insiders said that the chip foundry has informed supply chain partners that it is considering building a third factory in Kumamoto Prefecture, southern Japan, under the project code TSMC Fab-23 Phase III.


TSMC is currently building its first factory in Japan to produce chips with lower performance; According to insiders, there are also plans to build a second chip factory. It is currently unclear when the third factory will be built. The 3-nanometer chip manufacturing process is currently the most advanced commercial chip manufacturing technology, but by the time the new factory is mass-produced, the 3-nanometer process may lag behind the latest technology by 1-2 generations.


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Regarding this, A TSMC spokesperson said, "We will determine our capacity expansion strategy based on customer needs, operational efficiency, government subsidies, economic conditions, etc. TSMC is committed to meeting customer needs in the long term and supporting the semiconductor industry." "We are investing to address structural changes in the manufacturing industry. We are considering the possibility of building a second factory in Japan, but currently we have no further information to disclose


The government of Japanese Prime Minister Fumio Kishida has been providing trillions of yen in subsidies to attract investment from domestic and foreign semiconductor companies. In addition to TSMC, Japan has also successfully obtained investments from Micron Technology, Samsung Electronics, and Powerchip. Japanese officials also helped domestic startup Rapidus establish a production line for cutting-edge 2nm chips in Hokkaido.


It is understood that the cost of a 3-nanometer wafer factory may be as high as $20 billion, including the machines used for production, although the specific cost will depend on when the factory is built and how to obtain land and other materials. It is currently unclear how much TSMC expects to invest in the third wafer factory. Japan usually bears about 50% of the cost of such facilities.


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