TSMC officially announced the construction of "Japanese second factory" and upgraded the process to 6nm

TSMC recently issued an announcement announcing an increase in capital for overseas subsidiaries in Japan and the United States, as well as promoting the construction of the long-awaited "Japanese second factory".

According to the resolution of TSMC's board of directors, it was approved to increase the capital of Japan Advanced Semiconductor Manufacturing Company (JASM) to an amount of no more than 5.262 billion U.S. dollars, and it was also approved to increase the capital of its 100%-owned subsidiary TSMC Arizona to an amount of no more than 5 billion U.S. dollars.

With the Kumamoto Prefecture factory officially announced by TSMC and Sony in 2021 to be put into production this year, the "Japan Second Factory" has also officially come to the stage. In addition to Sony and Denso, which have already participated in investments, Toyota Motor Corporation will also take a minority stake in JASM. After the latest round of investment, TSMC will hold 86.5% of JASM's equity, while Sony, Denso and Toyota Motor will hold 6%, 5.5% and 2% respectively.

TSMC’s board of directors approved injecting no more than $5.26 billion into JASM. TSMC revealed that with the support of Japanese government subsidies, JASM’s total investment amount will also rise to US$20 billion. It has also been previously reported that the capital expenditure of the "Kumamoto Factory No. 2" is approximately 2 trillion yen (approximately 13 billion U.S. dollars), of which the Japanese government is considering providing 900 billion yen in subsidies.

It is reported that TSMC’s “Japanese second factory” will also further improve Japan’s domestic semiconductor process. The Kumamoto factory, which will be put into production within the year, has a planned production capacity of 55,000 12-inch wafers per month, using 22/28nm to 12/16nm processes. The new factory will start construction at the end of this year and be put into production in 2027. With the second Kumamoto plant put into operation, the production capacity of the entire JASM Kumamoto plant will reach 100,000 12-inch wafers per month, and it will also be able to provide 6/7nm process technology.