TSMC has initiated large-scale production at its new facility in Kumamoto, Japan, a significant development in the realm of advanced semiconductor manufacturing in the nation and heralding the beginning of its substantial global expansion efforts, according to Nikkei. This plant, managed by Japan Advanced Semiconductor Manufacturing (JASM), is rolling out semiconductors utilizing diverse process technologies to cater to TSMC’s prominent clients in Japan, as reported by DigiTimes.
With the operational launch of TSMC’s Kumamoto fabrication plant, Japan sees the production of logic chips with FinFET transistors for the first time. Located on Kyushu Island near Kumamoto, this facility is equipped to handle up to 55,000 300-mm wafer starts per month (WSPM), employing process technologies including 40 nm, 28 nm, 22 nm, 16 nm, and 12 nm-class. The N28 variants are designed primarily for automotive and other mature applications, while the 22ULP process targets ultra-low-power needs. The N16 and N12 technologies are aimed at performance-intensive applications that benefit from FinFET transistors.
Although 16nm-28nm-class technologies are considered outdated for cutting-edge processors used in PCs, smartphones, and even AI and high-performance computing (HPC), they remain highly relevant for automotive and consumer electronics parts, which are in strong demand by major Japanese corporations. These technologies are anticipated to maintain their relevance due to the prolonged lifecycle of many semiconductor products, which is the reason behind TSMC, its partners, and the Japanese government’s substantial investment of about $8.27 billion in JASM, supported by approximately $3 billion in government funding.
As for ownership, TSMC holds the majority control with an 86.5% stake, followed by Sony Semiconductor Solutions with 6.0%, automotive component manufacturer Denso with 5.5%, and Toyota holding a 2.0% stake.
Further expansion plans include the construction of a second fabrication plant at the same Kumamoto site, set to start construction in the first quarter of 2025, slightly behind schedule. This facility will focus on 6nm and 7nm-class process technologies and is expected to commence operations by the end of 2027. Once both plants are fully operational, their combined production capacity is estimated to exceed 100,000 300-mm wafers per month, with total investments nearing $20 billion.
The governor of Kyushu Island, Kimura, has shown interest in attracting a third TSMC fabrication plant to the region, potentially for 5nm or even 3nm-class technologies. However, he recognizes challenges that must be addressed, including the success of the initial two fabs and the need for solutions related to traffic and groundwater management. Both federal and local community support will be critical to these endeavors.
For TSMC, this venture into Japan marks a crucial step in its strategy to diversify operations outside of China, following earlier projects like WaferTech in the early 2000s and Fab 16 in Nanjing, China, in the latter half of the 2010s. The company is also on the verge of starting mass production of 4nm and 5nm-class chips at its Fab 21 near Phoenix, Arizona, another significant milestone in its international expansion. The next phase involves the ESMC facility near Dresden, Germany, primarily serving the automotive industry with 12nm, 16nm, 22nm, and 28nm-class process technologies.
