Analysis-Japan takes Taiwan's helping hand on long road to chip revival
By Sam Nussey and Miho Uranaka
TOKYO (Reuters) — Chipmaker TSMC formally opens its first Japanese plant on Saturday, highlighting the Taiwanese firm's critical role in Tokyo's multi-billion dollar efforts to reboot its once-mighty semiconductor manufacturing industry.
That Japan turned to TSMC for help on an industry it once dominated reflects the Taiwan chipmaker's dominant position in the foundry business and Tokyo's heightened concern over China's growing prowess in a wide swathe of technology.
The arrival of TSMC, the world's leading contract chipmaker, in Japan is seen as having sparked investment across a sector vital to economic security even as the government eyes a greater prize with its backing for homegrown foundry venture Rapidus.
«The possibility of having TSMC build a fab in Japan really rallied support from disparate parts of the semiconductor industry,» said Damian Thong, head of Japan research at Macquarie Capital Securities.
«They have built a snowball effect around it,» he said.
By 2027, Taiwan is projected to control two-thirds of foundry capacity for advanced processes as its lead is eroded by aggressive expansion in the U.S., according to research firm TrendForce, with Japan increasing its global share to 3%.
TSMC, which is also building capacity in the U.S. and Germany, is targeting mass production at the fab later this year and has announced plans for a second plant, bringing total investment in the venture to more than $20 billion.
Partnering with companies including Sony (NYSE:SONY) and Toyota (NYSE:TM), monthly capacity across the two fabs will exceed 100,000 12-inch wafers, strengthening Japan's access to chips, which are essential for the electronics, automotive and defence industries.
TSMC
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