The parties will establish a subsidiary called Japan Advanced Semiconductor Manufacturing (JASM), which will offer foundry service with initial technology of 22/28-nanometer processes to meet the market demand for speciality technologies
One of the semiconductor factories of TSMC. (Credit: Taiwan Semiconductor Manufacturing Company Limited)
Taiwan Semiconductor Manufacturing (TSMC) has joined forces with Sony Semiconductor Solutions to build a speciality technology fab in Japan with an initial investment of around $7bn.
In this regard, the parties have established a subsidiary called Japan Advanced Semiconductor Manufacturing (JASM) in Kumamoto, Japan. The subsidiary will be engaged in providing foundry services with initial technology of 22/28-nanometer processes.
JASM is expected to meet the strong market demand around the world for speciality technologies.
Sony Semiconductor Solutions intends to make an equity investment of around $500m in JASM, which will represent a stake of under 20%. The closing of the deal between TSMC and the Sony Group subsidiary is subject to customary conditions.
Sony Semiconductor Solutions president and CEO Terushi Shimizu said: “While the global semiconductor shortage is expected to be prolonged, we expect partnership with TSMC to contribute to securing a stable supply of logic wafers, not only for us but also for the overall industry.
“We believe that further strengthening and deepening our partnership with TSMC, which has the world’s leading semiconductor production technology, is extremely meaningful for the Sony Group.”
The speciality technology fab is slated to break ground next year. It is targeted to begin production by the end of 2024.
The semiconductor factory, which is anticipated to have a monthly production capacity of 45,000 12-inch wafers, will directly create nearly 1,500 high-tech professional roles.
TSMC CEO CC Wei said: “The digital transformation of more and more aspects of human lives is creating incredible opportunities for our customers, and they rely on our speciality processes that bridge digital life and real life.
“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.”
In June 2021, the Taiwanese computer chip manufacturing firm had started construction on a $12bn semiconductor plant in Arizona, US.
Earlier this year, the company revealed plans to invest $100bn during the next three years to increase the capacity of its chipmaking plants.