TSMC and Sony Semiconductor Solutions Corporation have jointly announced that TSMC will establish Japan Advanced Semiconductor Manufacturing, Inc., a speciality tech fab in Kumamoto, Japan. The subsidiary will provide a foundry service with initial technology of 22/28-nanometer processes to address the global market demand for speciality technologies, with Sony participating as a minority shareholder.
Construction of JASM’s fab in Japan is scheduled to begin in the 2022 calendar year with production targeted to begin by the end of 2024. The fab is expected to directly create about 1,500 high-tech professional jobs and to have a monthly production capacity of 45,000 12-inch wafers. The initial capital expenditure is estimated to be approximately US$7 billion with support from the Japanese government.
“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”, said Dr CC Wei, Chief Executive Officer of TSMC. “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”.
TSMC’s Japan-based fab follows the establishment of its first subsidiary in the country in 1997. More recently, TSMC set up the Japan Design Center in 2019 to serve its global customers and is now also working with Japanese partners on advanced packaging technology with the 3DIC Research Center in Ibaraki Prefecture.
“While the global semiconductor shortage is expected to be prolonged, we expect the 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”, said Terushi Shimizu, President and CEO of Sony Semiconductor Solutions Corporation.
Under definitive agreements reached between TSMC and Sony, the latter plans to make an equity investment in the Japan Advanced Semiconductor Manufacturing plant of approximately $0.5 billion, which will represent a less than 20% equity stake in JASM. The closing of the transaction between TSMC and SSS is subject to customary closing conditions.
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