According to Jiweiwang news, TSMC, the world's largest wafer foundry, is considering focusing its investment in Japan because of its expansion in the United States has encountered challenges.

On September 18, it was reported that TSMC is considering building more factories together with Sony and DENSO (Denso) in addition to its existing factory in Kikuyo Town, Kumamoto Prefecture.

It is reported that the Japanese government plans to provide one-third of the factory construction cost subsidy if TSMC builds a second semiconductor factory in Japan.

A source in the semiconductor industry said: "If a second factory is built in Japan, advanced semiconductor production will be concentrated in Japan. As the demand for artificial intelligence semiconductors continues to grow, securing production facilities is a top priority for TSMC."

TSMC's investments in Japan contrast sharply with its presence in the United States. The company's Phoenix, Arizona, plant began construction in 2021, but continues to face difficulties due to a lack of skilled workers and conflicts with local unions.

It is reported that TSMC plans to invest US$40 billion in an Arizona factory to produce 4-nanometer semiconductors starting next year. However, due to an acute shortage of skilled workers in July last year, they postponed the operation of the factory until 2025. Even plans to bring in skilled workers from Taiwan for construction have been challenged due to strong opposition from local unions.

In contrast, the work environment in Japan is similar to that in Taiwan, which makes staffing and operating factories easier. Unlike the United States and Europe, both Japan and Taiwan attach great importance to workers' dedication. The semiconductor industry requires long hours as chipmaking machines run around the clock in sterile clean rooms.

The Japanese government, which aims to "revitalize the semiconductor industry," has not stopped supporting it. The Kumamoto plant started construction last year with an estimated total investment of US$8.6 billion, half of which will be funded by the Japanese government.

View more at EASELINK