TSMC confirmed major investment plans on Thursday to produce advanced 3-nanometre chips in southern Japan.
The Taiwanese chipmaker’s chief executive CC Wei said the group, which is riding a huge global boom in the use of artificial intelligence, would build a second fab production facility, which a local newspaper said is expected to cost about $17 billion.
TSMC is the world’s largest contract chipmaker and a top supplier of AI chips for semiconductor designers such as Nvidia. Most of those chips have been made in Taiwan so far.
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TSMC has made significant investments in production facilities in the United States and they will soon have two fabs on Japan’s Kyushu island. The first produces less advanced chips and the second will be used to produce the 3nm chips.
Three-nanometre chips are high-end items, which the company is also looking to produce at their fabs in Arizona.
The boom in artificial intelligence has made TSMC the most valuable listed company in Asia.
Company CEO CC Wei met Japanese Prime Minister in Tokyo today and also had talks with Japanese partners and customers on collaboration in various industry subsectors.
“We believe this fab will further contribute to the local economic growth and, most importantly, form a foundation for Japan’s AI business,” Wei was quoted by Reuters as telling Takaichi.
Their meeting was well-timed for the country’s first female PM, who faces an election for lower house MPs this Sunday (Feb 8). Recent polling suggests she should win a majority of seats.
The Japanese government subsidized chipmaking at TSMC’s first facility and is considering further support for the new investment plan, according to a report by Yomiuri newspaper.
TSMC said last month that work on the second facility has already begun.
The government is also supporting a local foundry being built by Rapidus, which will produce advanced chips in Hokkaido, the northernmost island.
Yomiuri said the two groups’ chips will be used for different purposes.
- Jim Pollard
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