Taiwanese Company TSMS to Open New Factory in Japan

The Taiwanese company, “TSMC”, has announced that it will open its latest advanced chip manufacturing facility on Kyushu Island, Japan, on February 24th.

However, the launch of its factory in the United States is facing further delays, which poses a new setback for the administration of the US President, Joe Biden, who attracted the company in an attempt to reduce the US reliance on foreign factories.

A Taiwanese semiconductor manufacturing company controls over half of the global production of silicon chips used in various devices, from smartphones to cars and rockets.

In recent years, the company has dealt with the geopolitical competition between the United States and China, which includes Taiwan as its main manufacturing base.

During an investor call regarding fourth-quarter earnings in 2023, the Chairman of the Board Mark Liu announced that the official opening date of the factory in Japan is February 24th.

He added that the expansion of “TSMC” abroad “depends on the needs of our customers and the necessary level of government support.”

The Japanese government announced last year its intention to spend $13 billion to enhance local production of strategically important semiconductors and generative artificial intelligence technology.

An official at the Japanese Ministry of Trade stated in November that part of the spending would go towards supporting the construction of a second factory for the Taiwanese company in Kumamoto.

However, Leo said on Thursday, “The second factory is still in the serious evaluation stage.”

Leo also revealed that “plans to open the company’s factory in the US state of Arizona are on track for production in the first half of 2025.” However, he said, “The completion of a second factory in Arizona will be delayed until 2027 or 2028.”

Manufacturers in Arizona faced problems attributed to the Taiwanese company due to a shortage of skilled workers.

The chairman of the board also stated regarding the planned manufacturing facility in Germany, the first in Europe,” Construction is scheduled to begin in the last quarter of this year.” In terms of performance, TSMC announced a 19.3% decrease in its net profits from October to December to 238.7 billion Taiwanese dollars ($7.6 billion US dollars), while its revenues remained “largely stable”. (AFP)