TSMC's Kumamoto Facility Inaugurated, Morris Chang：AI to Drive Surge in Chip
China Times, February 25, 2024
The Taiwan Semiconductor Manufacturing Company (TSMC) has inaugurated its Japan Advanced Semiconductor Manufacturing (JASM) Kumamoto Fab with an investment of US$8.6 billion. The facility, which will implement its mature 12-nanometer, 16-nanometer, 22-nanometer, and 28-nanometer processes, was opened on February 24. Founder Morris Chang, in his speech, mentioned discussions with numerous artificial intelligence (AI) experts about capacity. He emphasized that, with AI driving demand, wafer production capacity is no longer in the tens or hundreds of thousands but needs three, five, or even 10 wafer fabrication plants. TSMC aims to continue leading the semiconductor industry into the AI era.
Chang's statements align with recent plans by Open AI CEO Samuel Altman to raise funds for the construction of several wafer fabs. Chang added that with AI assistance, semiconductor demand will increase, making TSMC a crucial player in the AI era.
The opening ceremony of the JASM Kumamoto Fab was jointly hosted by the triumvirate of founder Morris Chang, Chairman Mark Liu, and Chief Executive Officer C. C. Wei. Nearly 400 tech and political heavyweights attended, including Minister Kung Ming-hsin of the National Development Council, and TSMC Senior Vice President Y. P. Chin. Prime Minister Fumio Kishida of Japan sent a prerecorded video message to express his support and officially announced subsidies for TSMC.
According to the Kyushu Economic Research Association in Japan, TSMC is estimated to generate economic benefits of at least 20 trillion yen (about US$132.8 billion) over 10 years, driving up property prices, inflation, and talent acquisition in Kumamoto.
Announced in November 2021, construction of TSMC's Kumamoto Fab began in April 2022 and was completed within two years. Mass production is expected to commence in the fourth quarter of this year, with a monthly capacity of 55,000 12-inch wafers. The fab is a joint venture between Taiwan and Japan, with TSMC holding 50 to 70 percent, Sony Semiconductor Manufacturing Corporation (SSMC) around 20 percent, and Toyota Group's DENSO 10 percent. The future Kumamoto Fab 2 is expected to advance to the 6-nanometer process.
Sony President Kenichiro Yoshida revealed that three years ago, Sony intended to negotiate a procurement contract with TSMC. However, Wei directly discussed jointly constructing a wafer fab. Sony has stationed 200 employees at JASM to learn valuable experiences in logic semiconductor production.
Minister Kung, attending as TSMC's largest shareholder, emphasized two important meanings of the Kumamoto Fab opening. First, for TSMC, it consolidates the semiconductor ecosystem. Second, from the government's perspective, Taiwan-Japan cooperation significantly enhances the resilience of the global semiconductor supply chain. He explained that TSMC's most advanced 2-nanometer and 1.4-nanometer technologies remain in Taiwan, and overseas expansion primarily aims to strengthen its supply chain resilience.
From: https://www.chinatimes.com/newspapers/20240225000326-260110