TSMC Said to be Planning Second Fab in Japan

The rumour mill has kicked into high gear this week about TSMC planning a second fab in Japan. The original source is the Nikkan Kogyo newspaper (via Reuters), based in Tokyo, although it’s unclear where the actual fab would be located, if it’s indeed even happening. According to the paper, the new fab would be focusing on 5 e 10 nanometer chips, but production isn’t expected to start until sometime in the second half of this decade. This suggests that these would be mainstream nodes by then, which points to yet another fab for either the vehicle industry or something similar.

The fab is said to cost more than a trillion yen, or over US$7.4 billion to build. TSMC’s CEO C.C. Wei was asked about the potential fab during TSMC’s latest earnings call, but simply said that the company had nothing further to add. TSMC is of course busy building a fab in Japan on Kyushu island, but as it’ll have a node capacity for 12 a 16 nm parts, it makes sense that TSMC would already be planning for an extension of said fab that can produce on more advanced nodes as its customers will be moving to more advanced nodes over time.