TSMC-Sony partnership in Japan

TSMC plant in Tainan Science Park, Taiwan. © iStock.

Chip manufacturer Taiwan Semiconductor Manufacturing Co. (TSMC) will start making chips in Japan by 2024, as part of a joint venture with Sony. The companies have signed an agreement to build a US$ 7 billion factory in Kikuyō, a city in the west of Kyushu Island in Japan. Sony is expected to invest US$ 500 million and will own a 20% stake in the joint venture, according to a statement released on Tuesday. The project will create 1,500 jobs and has strong support from the Japanese government, according to TSMC. The new plant will not produce cutting-edge chips, but components using the older 22nm and 28nm processes. The shortage of these chips has an impact on many products, ranging from cars to mobile phones. Nikkei reports that TSMC’s board of directors also approved plans to build a new factory in Taiwan that would focus on 7nm chips. TSMC currently produces over 90% of its semiconductors in Taiwan. These expansions are part of TSMC’s ambitious plans to invest US$ 100 billion through 2023 to further develop its chip production capabilities.

⇨ The Verge, Chaim Gartenberg, “TSMC is partnering with Sony on its new $7 billion chip factory in Japan.”

⇨ Nikkei Asia, Cheng Ting-Fang, Lauly Li, “TSMC says it will build first Japan chip plant with Sony.”

2021-11-09