Taiwan Semiconductor Manufacturing Co TSM reportedly eyes its second Japanese plant in the same town as its first in Kumamoto prefecture. The critical Apple Inc AAPL and Nvidia Corp NVDA supplier looks to make a formal announcement on the location of its second factory in February, Nikkei Asia cited farm minister Tetsushi Sakamoto, the House of Representatives lawmaker. Taiwan Semiconductor Manufacturing will likely invest close to 2 trillion yen ($13.5 billion) in the new plant, which is likely to boost the economy in the southwestern Japanese prefecture. Also Read: Taiwan Semiconductor Outshines Nvidia and AMD in Investment Shift by Top Fund Managers However, as per the report, the locals say it could trigger complaints about groundwater pollution and traffic jams. Taiwan Semiconductor Manufacturing’s Japan debut plant, a wafer factory worth $8.6 billion, with mass production, will likely begin later this year. Previous reports claimed the Japanese government revamped its chip strategy to triple sales of domestically produced semiconductors to over 15 trillion yen ($108 billion) by 2030 versus sales of about 5 trillion yen in 2020. Reports indicated Japan’s plans to commit ¥2 trillion ($13.3 billion) in additional budget to boost its domestic semiconductors manufacturing position. The reports suggested Taiwan Semiconductor Manufacturing is eying a third advanced chipmaking plant in Japan to produce 3-nanometer chips in Kumamoto prefecture. A 3nm fab will likely be worth $20 billion, with Japan typically covering about 50% of such expenses. Japan has committed support for semiconductor manufacturing, including ¥476 billion for a TSMC plant in Kumamoto. Earlier this year, TSMC disclosed an ambitious $28-32 billion capital budget for fiscal 2024 with global expansion plans, including a new German fab plant. Also Read: TSMC Fastracks Completion Of US Plant As Samsung Gets Aggressive With Foundry Ambitions Price Action: TSM shares closed higher by 0.60% at $117.26 on Friday. Photo by Sundry Photography on Shutterstock © 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
This content was originally published here.
