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TSMC Plans to Build a $20 Billion Microchip Plant with Cutting-Edge 3nm Tech in Kumamoto, Japan

Last Updated on 22nd November 2023

TSMC (Taiwan Semiconductor Manufacturing Co.) is planning to construct a third plant in Kumamoto Japan. The new plant will manufacture advanced 3-nanometer chips. Furthermore, a 3nm semiconductor fabrication plant will likely cost around USD 20 billion. The cost will cover Land acquisition as well as equipment costs. Cutting-edge 3-nanometer technology is mainly used for the latest smartphones.

 

TSMC Factory

 

TSMC, one of the largest semiconductor manufacturers in the world is currently building its first plant in Kumamoto with investments from Sony Group and Denso which is expected to manufacture 12nm chips by late 2024. TSMC will also build a second fabrication plant close to its first plant in Kumamoto, which will manufacture 5nm chips in 2025.

 

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Japan is already providing the necessary financial support to bolster semiconductor manufacturing. TSMC selected Japan to best utilize its ancillary facilities and its expertise in semiconductor machinery. Apart from this TSMC is already planning to build two semiconductor fabrication plants in the US and one in Germany to diversify the supplies and mitigate the growing uncertainties in the Taiwan Strait.

 

About TSMC

 

TSMC

 

Taiwan Semiconductor Manufacturing Company Limited (TSMC) is a Taiwanese multinational semiconductor contract manufacturing and design company. It is the world's largest dedicated independent ("pure-play") semiconductor foundry, and its country's largest company, with headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. 

 

It is majority-owned by foreign investors, and the central government of Taiwan is the largest shareholder.TSMC offers a wide range of foundry services for the fabrication of integrated circuits (ICs). These services include:

 

  • Wafer processing: TSMC fabricates ICs on silicon wafers, using a variety of semiconductor manufacturing processes.

 

  • Packaging: TSMC packages ICs into a variety of formats, including ball-grid arrays (BGAs) and quad-flat packages (QFPs).

 

  • Testing: TSMC tests ICs for a variety of defects, including electrical and functional defects.

 

TSMC has several upcoming notable semiconductor fabrication plants (fabs) in the pipeline, representing significant investments in expanding its global manufacturing capabilities and advancing its technological prowess. Here are a few of the most notable projects:

 

  • Fab 21 in Arizona, USA: This fab is currently under construction and is expected to commence production in 2024.

 

  • Fab 18 Expansion in Camas, Washington, USA: TSMC is planning to expand its existing Fab 18 facility in Camas to increase its production capacity of 5nm node chips.

 

  • Potential Fab in Germany: TSMC is in discussions with German authorities to establish a new fab in Saxony, potentially with support from the German government and the European Union.

 

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