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TSMC opens 1st Japan chip factory, more investment planned


Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, holds an opening ceremony for its first factory in Japan, with more investment planned to build a second plant.

The first factory, built in the town of Kikuyo in Kumamoto, is set to start mass production of mature-technology semiconductors, including 12-nanometer chips used in automobiles and industrial equipment, in the October-December quarter this year. The plant is operated by TSMC's subsidiary Japan Advanced Semiconductor Manufacturing, in which Sony Group Corp. and Denso Corp., a major Japanese auto parts maker, each have a minority stake. TSMC, which is also building plants in Arizona in the United States and Dresden in Germany, is diversifying its production sites in the wake of risks arising from tensions between Taiwan and China, which sees the democratic island as its territory.

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