Japan to gain microchip factory

Taiwan Semiconductor Manufacturing Co (TSMC) says it will open a second manufacturing plant in Japan with backing from Toyota and Sony.

Japan Advanced Semiconductor Manufacturing, which is majority owned by TSMC, will begin building the new factory this year and aims to bring it into operation by the end of 2027.

The expansion of TSMC’s operations in Japan highlights the Japanese government’s push to onshore manufacturing of microchips, which – in addition to cars – are used in everything smartphones to military weapons. They are seen as critical components in technology, such as artificial intelligence.

Japan is looking to regain some leadership in the semiconductor arena. TSMC’s two factories will focus on applications in areas such as semiconductors for the automotive industry, industrial uses, consumer and high-performance computing.

The world’s largest contract chip manufacturer, TSMC makes microchips for companies such as Apple and Nvidia, and has been approached by many countries to set up operations locally.