Tue, 07 Dec 2021

Taiwan's TSMC to build Japan chip manufacturing factory

Robert Besser
17 Oct 2021, 16:56 GMT+10

TAIPEI, Taiwan: In a webcast, Taiwan Semiconductor Manufacturing Company (TSMC) has outlined its expansion strategies, which include building a Japan-based chip manufacturing plant.

Also, company officials warned of continued supply constraints in 2022.

The Japanese factory will primarily be involved in chip manufacturing by employing earlier technological developments, as opposed to state-of-the-art processors provided by TSMC to firms, including Nvidia, Apple, Qualcomm, and AMD. This especially holds significance, since the chips manufactured using older technology, such as the ones deployed in seatbelt and airbag mechanisms or the PMICs in iPhones are, in fact, those that are most unavailable.

However, this issue is not expected to be solved soon, since manufacturing at the new facility is not projected to begin until late 2024. Moreover, the Taiwanese firm is still in the process of making final its course-of-action pertaining to the new Japanese facility, as the company awaits the board's go-ahead.

TSMC had, six months back, raised an alert over chip shortages being experienced well into next year.

"In 2023, I hope we can offer more capacity to support our customers. At that time, we'll start to see the supply chain tightness release a little bit," CEO C.C. Wei earlier stated.

Pat Gelsinger, chief executive officer of Intel, also said he is concerned over continuing shortages of chips during 2022, saying "a year or two" might go by before the shortage ends.

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