Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, said Tuesday that its board has approved a capital appropriation of over US$9 billion for capacity expansion, while a deal to build a factory in Japan has been finalized.
TSMC’s board of directors approved a capital budget of US$9,036.44 million during Tuesday’s meeting to install and upgrade advanced technology capacity, and to build mature and specialty technology capacity, advanced packaging capacity, as well as new fab facilities, the company said in a statement.
According to TSMC, part of the budget will be used to build a production site for 7-nanometer and 28nm processes in Kaohsiung in 2022, with mass production expected to begin in 2024.
The statement said the budget also covers capitalized lease assets, as well as investment in research and development, and other capital expenditure for the first quarter of 2022.
In addition, the board approved “an equity investment of no more than US$2,123.40 million to establish a TSMC-majority-owned subsidiary in Japan to provide foundry services,” the company said.
In a separate statement issued by TSMC and Japan’s Sony Semiconductor Solutions Corp. that day, the Taiwanese chipmaker said the two companies have agreed to set up a joint venture called Japan Advanced Semiconductor Manufacturing, Inc. (JASM) in the Japanese prefecture of Kumamoto.
Sony, which plans to make an equity investment of around US$500 million in the joint venture, will hold a stake of less than 20 percent in JASM, according to TSMC.
While the transaction between the two companies is subject to customary closing conditions, TSMC said the planned joint venture is set to begin building a wafer plant with initial 22/28-nanometer processes technology in 2022, and production is expected to begin by the end of 2024.
The new plant in Japan is expected to directly create about 1,500 high-tech professional jobs and to have a monthly production capacity of 45,000 12-inch wafers, with initial capital expenditure estimated to be approximately US$7 billion, TSMC said.
“We are pleased to have the support of a leading player and our long-time customer, Sony, to supply the market with an all-new fab in Japan, and are also excited at the opportunity to bring more Japanese talent into TSMC’s global family,” TSMC CEO C.C. Wei (魏哲家) said in the statement.
The plan to set up a production site in Japan was first announced by Wei at an investor conference in mid-October. No financial details of the investment were given at that time.
Also during Tuesday’s meeting, the TSMC board approved a cash dividend of NT$2.75 (US$0.1) per share for the third quarter of 2021, after posting a record quarterly net profit of NT$156.26 billion for the July-September period, the company said.
Source: Focus Taiwan News Channel