Taiwan Semiconductor Manufacturing Company (TSMC) inaugurated its first semiconductor factory in Japan today, Saturday, during an official celebration, as part of its ongoing global expansion plan. Mark Liu, the company's president, expressed gratitude to the Japanese government, local communities, and businesses, including electronics giant Sony and auto parts manufacturer Denso, stating, "We are very grateful for the tremendous support you have provided at every step." The event was attended by the Taiwanese company's founder, Morris Chang. This comes as Japan seeks to regain its status in chip production.
Advanced semiconductor manufacturing in Japan is scheduled to begin later this year. The Taiwanese company also announced earlier this month plans for a second factory in Japan, with production expected to start in approximately three years. The total private sector investment amounts to $20 billion for both factories, located in the Kumamoto region of southwestern Japan. Japanese Prime Minister Fumio Kishida sent a congratulatory video message, describing the factory's opening as "a giant first step." He emphasized Japan's friendly relations with Taiwan and the importance of advanced semiconductor technology.
Japan had promised TSMC government support of 476 billion yen ($3 billion) to encourage the semiconductor giant to invest. Kishida confirmed a second package, raising Japan's support to over 1 trillion yen ($7 billion). Despite TSMC building its second factory in the United States and announcing plans for its first in Europe, Japan may prove to be a more attractive option. Due to its geographical proximity to Taiwan, Japan is an important ally to the United States. China claims the self-governing island as part of its territory and insists on being brought under Beijing's control by force if necessary. This division is a point of contention in U.S.-China relations and also marks a significant step for Japan, which recently allocated around 5 trillion yen ($33 billion) to revive its chip industry.
Japan, four decades ago, dominated the semiconductor industry, led by companies like Toshiba and NEC, which accounted for half of global production. This figure has recently dropped to less than 10 percent, due to competition from manufacturers in South Korea, the United States, Europe, and Taiwan.
