Historical Milestone Achieved: Chipmaking Giant Inaugurates Initial Facility in Japan - Landmark Deal Marked by Firm Handshakes
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In a significant move for the global semiconductor industry and the automotive sector, particularly Toyota, Taiwan Semiconductor Manufacturing Company (TSMC) has opened its first Japanese plant in Kikuyo, Kumamoto Prefecture.
The plant, which began mass production in late 2024, marks TSMC's expansion beyond Taiwan and the US, diversifying its manufacturing presence and reducing supply chain risks amid geopolitical tensions and potential tariffs on semiconductors.
The Japanese fab produces mature process nodes (12nm, 16nm, 28nm) suited to automotive applications, a critical factor for the automotive industry, including Toyota, which heavily relies on stable chip supplies to avoid production disruptions.
Toyota Chairman Akio Toyoda was present at the opening ceremony, sealing a close cooperation with TSMC's CEO, C.C. Wei. This strategic partnership supports Toyota's strategy to enhance local sourcing for chips, improving supply chain resilience and enabling just-in-time production.
TSMC's commitment to Japan extends beyond the first plant. The company has announced plans to construct a second fab in Kumamoto, focusing on more advanced 6nm and 7nm process technologies aimed at sophisticated chips, including those needed for automotive electronics and other high-tech sectors.
This positions Japan as an important hub for both current and future chip manufacturing innovation serving automotive and other industries. Despite construction delays due to local infrastructure and traffic issues, TSMC remains committed to the Japanese expansion, signalling the strategic importance of Japan as a manufacturing base.
The rebound in semiconductor production has caused a global supply crunch, with extra-long car delivery times becoming a society-wide issue. The importance of semiconductors in our daily lives, including in cars, is continuing to rise, as a single car is said to use one thousand chips.
TSMC's Japanese expansion is a milestone in strengthening the automotive supply chain in Japan and globally, contributing to stabilizing and strengthening the industry amid evolving geopolitical and market risks.
The additional investment in Japan Advanced Semiconductor Manufacturing (JASM) is being provided by TSMC, Sony Semiconductor Solutions, Denso, and Toyota. The opening of the first TSMC plant in Japan, and the planned construction of the second, underscores the indispensable role of semiconductors in our daily lives.
[1] TSMC's Japanese Expansion: Strategic Move for Global Semiconductor Industry
[2] TSMC Announces Plans for Second Japanese Fab
[3] Japanese Government Welcomes TSMC's Expansion in Kumamoto
[4] Infrastructure Challenges Delay TSMC's Second Japanese Fab Construction
[1] The strategic move by TSMC to establish its first Japanese plant signifies a significant expansion in the global semiconductor industry, particularly in the finance, energy, technology, and automotive sectors.
[2] In a bid to further diversify its manufacturing presence and minimize supply chain risks, TSMC has announced plans for a second fab in Japan, focusing on advanced process technologies applicable to various sectors including technology, energy, finance, and automotive electronics.
