Taiwan Semiconductor Manufacturing Company (TSMC), Sony Semiconductor Solutions Corporation, DENSO Corporation and Toyota Motor Corporation announced a significant investment in Japan Advanced Semiconductor Manufacturing, Inc. (JASM), a subsidiary of TSMC, located in Kumamoto Prefecture, Japan. The investment aims to construct a second fabrication facility, scheduled to begin operations by the end of the 2027 calendar year. Toyota will also acquire a minority stake in the venture. This move comes as part of an overall investment exceeding $20 billion in JASM, with substantial backing from the Japanese government, TSMC said.
JASM, in response to increasing customer demand, plans to start construction of its second facility by the end of 2024. The expansion aims to enhance production capacity, improve cost structures and streamline supply chain efficiency. Upon completion, both facilities are expected to enable JASM’s Kumamoto site to produce over 100,000 12-inch wafers monthly. These wafers will support various applications, including automotive, industrial, consumer and high-performance computing, across 40, 22/28, 12/16 and 6/7 nanometer process technologies. The capacity plan remains flexible and subject to adjustment based on customer demand, JASM said. Additionally, the expansion is projected to create more than 3,400 high-tech professional jobs directly.
Following the investment, TSMC will maintain the majority stake in JASM, with approximately 86.5% ownership. SSS, DENSO and Toyota will hold equity stakes of approximately 6%, 5.5%, and 2%, respectively. The completion of the transaction is subject to customary closing conditions.
