TSM To Build Chip Factory In Taiwan, Specialty Technology Fab In Japan

 


  • Apple Inc AAPL supplier Taiwan Semiconductor Manufacturing Co Ltd TSM will set up a new chip factory in the island's southern city of Kaohsiung, Reuters reports.

  • The new chip fabrication plant will produce advanced 7-nanometer chips and mature 28-nanometer semiconductors to counter the global chip crisis.

  • The construction of the factory will begin in 2022 and production in 2024.

  • TSM and Sony Semiconductor Solutions Corporation (SSS) announced that TSM would establish a subsidiary, Japan Advanced Semiconductor Manufacturing, Inc (JASM), in Kumamoto, Japan.

  • JASM will provide foundry service with initial technology of 22/28-nanometer processes to address strong global market demand for specialty technologies, with SSS participating as a minority shareholder. SSS plans to make an equity investment in JASM of $500 million, implying a less than 20% equity stake.

  • The construction of JASM's fab will likely begin in CY22, with production targeted to commence by the end of 2024. 

  • The fab can create 1,500 high-tech professional jobs and have a monthly production capacity of 45,000 12-inch wafers. 

  • The initial capital expenditure is $7 billion with strong government support.

  • TSM Price Action: TSM shares were trading near-flat at $120.85 late Tuesday morning. 

 

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