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TSMC plans new chip factory with Sony in western Japan

Apple chip partner TSMC may work with Sony on a new semiconductor factory in Japan, as part of a $7 billion investment that could start production of chips by 2024.

Taiwan Semiconductor Manufacturing Co is reportedly in talks with Sony Group to potentially construct a semiconductor factory in western Japan. The facility, which could become TSMC's first operation in Japan, is seemingly targeting chip production for automotive purposes, among other uses.

The project is expected to cost around 800 billion yen ($7 billion), sources of Nikkei reveal. The Japanese government is apparently expected to produce up to half of the total investment's value, with Sony potentially taking only a minority stake in the operation.

If approved, the factory will be constructed in Kumamoto Prefecture on land owned by Sony, near to its existing image sensor factory. One of the potential uses for the produced semiconductors is camera image sensors, the sources say, which could lead to the factory working with Sony's nearby facility in some way.

TSMC and Sony may not be the only companies involved in the project. Toyota Motor Group member Denso is allegedly keen to take part, possibly to gain a stable chip supply for auto parts.

Given Apple's connection to TSMC, it's entirely possible that the major customer of the chip foundry could get involved, possibly to secure its own auto chip production for the long-rumored Apple Car.

While the two companies are in talks about the partnership, it seems that there may be some time to wait before the factory becomes usable for production. People familiar with the plans believe it will start operation by 2024.

In theory, the plant may go online towards the expected tail end of the chip shortage, one that is forecast to impact manufacturing for a few years at least. Governments are trying to rectify the problem in various ways, such as the U.S. Innovation and Competition Act, a $250 billion bill aiming to increase funding for domestic semiconductor production.



27 Comments

rob53 14 Years · 3329 comments

Is there any way Apple could manufacture major products in the US if TSMC built a semiconductor facility in the US? I know China has the majority of natural resources required for many computers along with a huge labor force but could this actually happen? Not sure it would be financially possible but when almost everything is being attached to a motherboard (iPhone, iPad and Macs), the amount of non-robotic manufacturing has been greatly reduced. Just a thought for no other reason that possibly reducing the amount of IP theft and a reduction of import duties.

1 Like · 0 Dislikes
robaba 5 Years · 228 comments

TSMC HAS production in the US, and more on the way, but the industrial base isn’t here any more.

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dope_ahmine 5 Years · 268 comments

The previous US presidency started this drive to invite industry back to the country. But why was this started so late? I mean, the shit was already deep into the fan, and building a functional manufacturing industry takes a very long time. Naivism; underestimating China? Fear of confronting China?

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slow n easy 10 Years · 402 comments

The previous US presidency started this drive to invite industry back to the country. But why was this started so late? I mean, the shit was already deep into the fan, and building a functional manufacturing industry takes a very long time. Naivism; underestimating China? Fear of confronting China?

A lot of people naively thought that if we built up China’s economy and made China a rich nation, then China would naturally become a democratic country because the people would demand it. Unfortunately, as China is getting richer, the government is becoming even more authoritarian. Oops!

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GeorgeBMac 9 Years · 11421 comments

The previous US presidency started this drive to invite industry back to the country. But why was this started so late? I mean, the shit was already deep into the fan, and building a functional manufacturing industry takes a very long time. Naivism; underestimating China? Fear of confronting China?

U.S. manufacturing moved out of the U.S. 40-50 years ago in the 70's and 80's -- steel, cars, electronics, etc... and ancillary and associated industries followed.   But they didn't go to China.  It went to Japan.  But now we blame China -- which makes us look silly.

In 1986 I was working for a major, vertically integrated U.S. steel company but was recruited to work for its sister company, an IT start up.  My angry boss asked me:  "What are you going to do when they close down?".   I responded by asking him what he was going to do when National Steel shut down.  He scoffed.  But a couple years later it was sold to NKK -- a Japanese company and he was out of a job.  Likewise, Toyota and Honda decimated the U.S. auto industry while Sony and Panasonic drove Zenith, Emerson, RCA, Westinghouse & GE out of the electronics business.   Later, South Korea conquered the home appliance market.

We never came to grips with the issues that, despite protective tariffs, drove our manufacturing out of the country -- while China was an impoverished, agrarian, rice eating society.   But yeh, let's blame China.

The U.S. needs to stop making excuses, examine why our industries left the country back then and figure out how to correct the problem(s) that shut down U.S. manufacturing.

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