Taiwan's TSMC to build first chip plant in Japan amid crunch

→ Your Next Portfolio Star: Revealing 2024's Top Stock Pick (From Darwin) (Ad)

A person walks into the Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) headquarters in Hsinchu, Taiwan, Wednesday, Oct. 20, 2021. Japanese electronics maker Sony and TSMC of Taiwan said Tuesday, Nov. 9, 2021, that they were building a computer chip plant in Japan together with an initial investment capital valued at $7 billion. (AP Photo/Chiang Ying-ying)

TOKYO (AP) — Japanese electronics maker Sony and TSMC of Taiwan said Tuesday they plan to jointly build a computer chip plant in Japan with an initial investment of $7 billion.

The plant in the southwestern city of Kumamoto will be the first foundry in Japan for TSMC, one of the world’s leading chipmakers. Construction will start next year for the plant to be up and running by 2024, employing 1,500 high-tech professionals.

Get analyst upgrade alerts:

The move comes as a supply crunch in chips has slammed various Japanese companies, including automaker Toyota Motor Corp. and video-game maker Nintendo Co., as lockdowns and other coronavirus measures in parts of Asia have hurt chip production.

Sony Semiconductor Solutions Corp., a wholly owned subsidiary of Sony Corp., will be a minority stakeholder, with less than 20% equity, investing $500 million in the new TSMC subsidiary, Japan Advanced Semiconductor Manufacturing.

The overall investment is getting “strong support from the Japanese government,” the joint statement said.

The deal is subject to regulatory approval.

Terushi Shimizu, president of Sony Semiconductor Solutions, said the global semiconductor shortage was expected to continue. The partnership with TSMC will help not only Sony but also other companies, he said.

There has been speculation other Japanese companies, such as Toyota Motor Corp., may join the project, but TSMC declined comment, saying nothing was decided.

“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,” said Chief Executive C.C. Wei.

___

Yuri Kageyama is on Twitter https://twitter.com/yurikageyama

Ad Paradigm Press

Forget Bitcoin. Crypto Millionaire Predicts 8,788% Gains For THIS

You might have seen that Bitcoin was one of the best performing assets of 2023. It gained 164%. But a crypto millionaire who has been tracking the space for more than a decade has ABANDONED Bitcoin. He found something better.

Click here to find out that this 8,788% cryptocurrency is.

→ Forget Bitcoin. Crypto Millionaire Predicts 8,788% Gains For THIS (From Paradigm Press) (Ad)

Where should you invest $1,000 right now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

Metaverse Stocks And Why You Can't Ignore Them

Thinking about investing in Meta, Roblox, or Unity? Click the link to learn what streetwise investors need to know about the metaverse and public markets before making an investment.

Get This Free Report