Due to significant demand, TSMC together with Sony Semiconductor Solutions Corporation, DENSO Corporation, and Toyota Motor Corporation, has announced an additional investment into Japan Advanced Semiconductor Manufacturing, Inc. (JASM), TSMC’s majority-owned subsidiary in Kumamoto. Japan. This investment is aimed at constructing a second fabrication plant or fab, which is scheduled to get up and running by the end of 2027. Toyota will also become a minority stakeholder in this strategic expansion.
The decision to build a second fab comes in response to the increasing demand from customers and is part of a broader plan to enhance the production capabilities of JASM. The first fab is already on track to start operations in 2024, and with the completion of the second fab, the total investment in JASM will surpass US$20 billion. This expansion is supported robustly by the Japanese government, highlighting the project’s significance to the region’s economic and technological landscape.
The construction of the second fab is planned to begin by the end of 2024. This expansion is not just about increasing production capacity; it is also aimed at improving the overall cost structure and supply chain efficiency for JASM. Once both fabs are operational, the Kumamoto site is expected to have a total production capacity exceeding 100,000 12-inch wafers per month. These wafers will be produced using advanced 40, 22/28, 12/16, and 6/7 nanometer process technologies, catering to a wide range of applications including automotive, industrial, consumer, and high-performance computing (HPC).
The capacity plan for these fabs is flexible and may be adjusted based on the evolving demands of JASM’s customers. This expansion will significantly enhance JASM’s manufacturing capabilities, making it a key player in the global semiconductor industry.
In terms of employment, the establishment of both fabs at the Kumamoto site is expected to directly create over 3,400 high-tech professional jobs, contributing to the local economy and the tech industry’s growth.
Following this investment, the equity stakes in JASM will be distributed as follows: TSMC will hold approximately 86.5%, SSS 6.0%, DENSO 5.5%, and Toyota 2.0%. The completion of this transaction among JASM, TSMC, SSS, DENSO, and Toyota is subject to customary closing conditions.
This strategic investment marks a significant milestone in the semiconductor industry, emphasizing the collaborative efforts of leading companies to meet the global demand for advanced semiconductor technologies.