TSMC recently started building a research and development center in Japan, now a complete factory could follow. The Japanese government, like Europe, had demanded more semiconductor factories in the country and promised generous subsidies, which is why TSMC dares to take a look at possible locations.
One Factory for 28 to 16 nm is up for discussion
Kumamoto Prefecture in the very south-west of Japan is currently the most likely location. In the vicinity of a large Sony complex, TSMC would offer itself as a suitable supplier; the demand for image sensors, microcontrollers and other chips is also unbroken at Sony. Of course, Sony would not be an exclusive customer, TSMC would operate the factories independently, like every one of its locations so far, says the Nikkei report.
According to the statements made so far, it would not be a factory with a focus on the smallest nanometer manufacturing processes, but would serve the large market alongside high-end solutions such as automotive chips. A production stage of currently 45 nm or larger is completely sufficient for this, but the future lies in many areas at 28 to 16 nm, which is why TSMC will allegedly aim for these processes right at the start.
States have created extremely high incentives
Like the USA and Europe, Japan has announced a wide range of funding opportunities to expand semiconductor production in its own country. Japan was once a leader in the field, but has steadily fallen behind over the past few decades, from almost 50 percent of the high-end market in the late 1980s to below ten percent in recent years. The country will not manage to turn around with companies that are already established, which is why the Japanese government is already paying more than half of TSMC's new research and development park.
TSMC also has it in the USA already accessed and building a factory, rumors were already circulating about a location in Europe. Like other large manufacturers, TSMC naturally looks to the complete package of tax breaks, subsidies and other incentives, which these days seem to be better than they have been for a long time.
TSMC also invests billions itself
TSMC does not skimp on its own money either to take in hand. In the next three years, around 100 billion US dollars will flow into the expansion of production capacities, various expansion stages in existing and completely new factories are at the top of the list alongside new back-end production lines. More on this can be found in the report “Capacity expansion: Overview of TSMC's new fabs and expansion stages”