TSMC, the world’s leading foundry, is considering building a second wafer fab in Japan, according to chairman C.C. Wei.
TSMC is already building a specialty fab in partnership with Sony and automotive supplier Denso (see Japan to provide 40 percent subsidy to TSMC, Sony venture). The joint venture, known as Japan Advanced Semiconductor Manufacturing Inc., is building a fab at Kikuyo, Kumamoto Prefecture, that is expected to begin volume production late in December 2024.
Speaking at the TSMC’s analyst conference held to discuss the company’s fourth quarter and full-year results, Wei said: “We are also considering building a second fab in Japan as long as the demand from customers and the level of government support make sense.”
Still negotiating in Europe
Wei also re-iterated that TSMC is engaging with customers and supply partners in Europe to evaluate the possibility of building a fab in Europe. Wei said the fab, if built, would be focused on automotive components and, again, its progress would depend on the levels of demand from customers and the level of government support.
As long ago as 2021 TSMC was said to be considering placing a fab in Dresden (see TSMC mulls building a 12nm Dresden fab) but progress has been slow and TSMC has yet to commit to a plan.
In 2022 TSMC made an income before tax of NT$1,114 billion (about US37.7 billion) on record sales revenue of NT$2,264 billion (about US$75 billion). In NT$-terms sales were up 42.6 percent year-on-year.
The company also indicated that it would drop its capital expenditure slightly in 2023. In 2022 TSMC spent about $36.3 billion. TSMC’s capital expenditure in 2023 is expected to be between $32 billion and $36 billion.