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TSMC thinking about moving some operations to Japan amid growing China tensions

Credit: Taiwan Semiconductor Manufacturing Co.

Chip manufacturers, including Apple supplier TSMC, have begun considering moving a portion of their manufacturing to Japan as US/China tensions continue to escalate.

Seven chipmakers have met with Japanese prime minister, Fumio Kishida, to discuss moving some portion of their operations to Japan. The announcement comes ahead of a G7 summit in Japan, where economic stability is expected to be a core topic.

Among those meeting with Kishida is Taiwan-based TSMC, the world's largest semiconductor foundry. TSMC is responsible for creating all of Apple's processors.

However, due to mounting geopolitical tension, the company could see investors pulling out if it does not move at least a portion of its manufacturing out of Taiwan.

According to the Financial Times on Thursday, TSMC has expressed interest in investing more money and resources into Japan after it had agreed to build a new plant in Kumamoto.

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Along with TSMC, Samsung, Intel, and Micron have also expressed interest in building plants in Japan.

Japan's minister of economy, trade, and industry, Yasutoshi Nishimura, has said the Japanese government would use 1.3 trillion yen from its supplementary budget to support pledges made by foreign chipmakers.

Separately, TSMC was reported in December 2022 to have tripled its investment in a new chip factory in Arizona. More recently, the firm has criticized American workers and also suggested that its plans for further US expansion may be halted over tax issues.



36 Comments

waveparticle 4 Years · 1497 comments

JP234 said:
Probably a good move, given what Xi said yesterday.

If Taiwan is peacefully reunited with China, is it the end of Western civilization? LOL

melgross 21 Years · 33636 comments

I think it’s interesting that we’ve had criticism of the administration here designating less than $60 billion for direct chip manufacturing support, while the Japanese government is giving around $400 billion, from an economy that’s about 40% the size of ours. Unless people here understand we need to get serious about this (and other matters) we’re going to be left behind. It’s gotten to the point where chip manufacturing has gotten so expensive, and the industry’s sales have stopped growing to support these increased costs, that without extensive governmental monetary help, it will collapse here.

2 Likes · 0 Dislikes
waveparticle 4 Years · 1497 comments

melgross said:
I think it’s interesting that we’ve had criticism of the administration here designating less than $60 billion for direct chip manufacturing support, while the Japanese government is giving around $400 billion, from an economy that’s about 40% the size of ours. Unless people here understand we need to get serious about this (and other matters) we’re going to be left behind. It’s gotten to the point where chip manufacturing has gotten so expensive, and the industry’s sales have stopped growing to support these increased costs, that without extensive governmental monetary help, it will collapse here.
$400 billion? Do you learn math from the athletic? 

freeassociate2 4 Years · 217 comments

melgross said:
I think it’s interesting that we’ve had criticism of the administration here designating less than $60 billion for direct chip manufacturing support, while the Japanese government is giving around $400 billion, from an economy that’s about 40% the size of ours. Unless people here understand we need to get serious about this (and other matters) we’re going to be left behind. It’s gotten to the point where chip manufacturing has gotten so expensive, and the industry’s sales have stopped growing to support these increased costs, that without extensive governmental monetary help, it will collapse here.
$400 billion? Do you learn math from the athletic? 

I’m a bit confused by that statement, too. Current exchange rate says that’s 9.4 billion U.S. Dollars, not $400 billion. 

1 Like · 0 Dislikes
eightzero 15 Years · 3162 comments

JP234 said:
Probably a good move, given what Xi said yesterday.
If Taiwan is peacefully reunited with China, is it the end of Western civilization? LOL

Xi, is that you, Comrade?

7 Likes · 0 Dislikes