TSMC and Sony To Form New Chip JV in Japan, Sign Deal For $7 Billion Fab

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The construction of the chip factory, TSMC’s first-ever in Japan, is scheduled to begin in the 2022 calendar year with production targeted to begin by the end of 2024

Taiwan Semiconductor Manufacturing Company has announced that it is forming a joint venture along with Sony Semiconductors to start producing chips in Japan by 2024 after the two companies signed a deal for a $7 billion plant.

The subsidiary, Japan Advanced Semiconductor Manufacturing, Inc (JASM), will be sitauted in Japan’s Kumamoto district and will provide foundry service with initial technology of 22/28-nanometer processes with Sony participating as a minority shareholder, the company said in a statement.

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The construction of the chip factory, TSMC’s first-ever in Japan, is scheduled to begin in the 2022 calendar year with production targeted to begin by the end of 2024. The fab is expected to directly create about 1,500 high-tech professional jobs and to have a monthly production capacity of 45,000 12-inch wafers.

Under definitive agreements reached between TSMC and Sony, the statement said that Sony plans to make an equity investment in JASM of approximately USD 0.5 billion, which will represent a less than 20 percent equity stake in JASM.

“The digital transformation of more and more aspects of human lives is creating incredible opportunities for our customers, and they rely on our specialty processes that bridge digital life and real life,” said Dr. CC Wei, Chief Executive Officer of TSMC.

“We are pleased to have the support of a leading player and our long-time customer, Sony, to supply the market with an all-new fab in Japan, and also are excited at the opportunity to bring more Japanese talent into TSMC’s global family.”

The Japanese government has been attempting to woo TSMC to its shores in recent years, as the Taiwanese company boasts the world’s most advanced chip manufacturing technologies.

In that purview, the Japanese government is working to create a framework for subsidies to support the new plant and others like it.

Under the framework, companies that build chip factories in Japan will be eligible for subsidies on the condition that they respond to requests for increased production and prioritize supply to domestic companies should supplies of semiconductors become tight.

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