TSMC Opens First Chip Plant in Japan as it Diversifies Supply Chains Away from Taiwan amid U.S.-China Trade Tensions

Taiwan Semiconductor Manufacturing Company inaugurated its first chip plant in Japan to reduce reliance on Taiwan and navigate U.S.-China trade tensions. The company, the world's largest contract chip manufacturer, plans to begin production at the facility by late 2024. JASM, majority-owned by TSMC, is constructing the facility with support from the Japanese government, Sony Semiconductor Solutions, and Denso Corporation. Japan aims to strengthen its semiconductor industry to compete with Taiwan and South Korea. The Japanese government's investment in JASM will exceed $20 billion, with more than 3,400 high-tech jobs expected to be created. TSMC's Japanese factories will focus on producing semiconductors for automotive, industrial, and consumer uses, as well as high-performance computing. TSMC is also investing $40 billion in Arizona for two chip manufacturing plants to meet U.S. annual demand and diversify its global operations.