TSMC, Japan's first chip factory, will only start operating in 2023/2024, but some customers seem to be preparing to save some of their power. One such customer is Sony, which is said to have invested $7 billion with TSMC to build a plant in Japan.
TSMC's first chip factory in Japan will be built at Sony Property, near the Japanese company's image sensor factory in Kumamoto Prefecture, on the island of Kyushu in western Japan. Like neighboring Sony, Japan's TSMC is set to manufacture camera image sensors, vehicle chips, and other products. According to the 28nm node, the expected production of this plant will be 40,000 chips per month.
With Sony's investment in the first TSMC factory in Japan, the company is expected to have a small stake in a new company created solely for the purpose of running the chip factory. The plant is said to be operational in 2023 or 2024.
Plans to build a Japanese plant were approved by TSMC in July when the semiconductor giant announced it was "actively reviewing" project strategies and proposals.
Compared to TSMC's $12 billion investment to build a chip plant in Arizona, $7 billion for a Japanese plant might not seem like much. However, it should be noted that the primary goal is to produce 5nm chips, while the latter is for 28nm chips, an older technology that is much cheaper.
Sony is set to become the main customer of TSMC's first factory in Japan