Taiwanese company TSMC announced that it will open its latest advanced chip manufacturing facility on Kyushu Island, Japan, on February 24th, while the inauguration of its US plant faces further delays, according to a report from the French news agency.
TSMC dominates over half of the world’s semiconductor production, with silicon chips used in various devices, from smartphones to cars and missiles.
The company has successfully navigated geopolitical competition between the US and China in recent years, which included Taiwan, its primary manufacturing base.
During a call with investors regarding Q4 2023 earnings, TSMC’s Chairman Mark Liu announced that the official opening date for the plant in Japan is February 24th. He added that TSMC’s expansion abroad “depends on the needs of our customers and the necessary level of government support.”
The Japanese government announced last year its intention to spend $13 billion to enhance local production of strategically important semiconductors and generative AI technology.
An official in Japan’s Ministry of Trade said in November that part of the spending would be directed to support the construction of a second plant for the Taiwanese company in Kumamoto. However, Liu stated on Thursday that the second plant is still in “serious evaluation.”
Liu also revealed that plans to open the company’s plant in Arizona, USA, are “on track for production in the first half of 2025.” However, he added that completing a second plant in Arizona will be delayed until 2027 or 2028.
The delay represents a setback for the administration of US President Joe Biden, who attracted TSMC in an attempt to reduce the US reliance on overseas factories, according to the report.
The construction of the plants in Arizona faced problems attributed to a shortage of skilled workers by the Taiwanese company. Regarding the planned manufacturing facility in Germany, the first in Europe, Liu stated that construction is “scheduled to begin in the last quarter of this year.”
On the performance side, the report states that TSMC announced a 19.3% decline in its net profits from October to December 2023 to TWD 238.7 billion (USD 7.6 billion), while its revenues remained “basically stable.”
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