[News] TSMC’s Japanese Factory Eyes Mass Production by Late 2024, Profitability in 2025

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According to a report by China’s tech news outlet JIWEI, industry sources have revealed that TSMC’s Kumamoto semiconductor fab in Japan is expected to turn profitable in 2025, following mass production anticipated to commence by the end of 2024.

Industry sources suggest that TSMC has bolstered its deployment in Kumamoto, Japan, in cooperation with its ecosystem partners in Taiwan, to better support key local clients. This collaboration is expected to yield benefits starting early 2024 from TSMC’s new fab.

The decision behind TSMC’s establishment in Kumamoto has multiple facets. Firstly, it’s believed that Apple desires full-fledged support from TSMC for its major supplier, Sony. Secondly, TSMC has maintained a long-term mutually beneficial relationship with Japan, potentially enhancing its research capabilities in materials and ensuring stable production capacity. Lastly, the Japanese government’s subsidies for factory construction align with TSMC’s needs, significantly reducing operational risks due to long-term orders from Sony and automotive clients.

Supply chain reports indicate that TSMC’s Kumamoto fab has steadily completed cleanrooms and electromechanical integration. With water and power supplies progressively becoming available, the relocation is anticipated to begin on October 1st, with subsequent trial production activities. This investment represents the sole overseas expansion of TSMC that is progressing smoothly and ahead of schedule, with plans for official mass production in the coming year.

Recent details regarding TSMC’s second Japanese fab have surfaced, indicating a groundbreaking date around April 2024, with production slated to commence by late 2026. The total investment is expected to exceed 1 trillion Japanese yen, primarily for producing 12nm process chips.

(Photo credit: TSMC)