Taiwan Semiconductor Manufacturing Co (TSMC) may be considered to be one of the most important companies in the world when it comes to the tech industry right now. It also finds itself somewhat threatened due to Taiwan’s current political tensions with China. With this in mind, TSMC is said to be looking into expansion in Japan in order to lessen risks to the company.
TSMC’s supposed investigation into Japan expansion was reported this week by the Wall Street Journal. According to said reports, sources familiar with situation claimed that Taiwan Semiconductor has not made an official decision on expansion yet. However, it is already building a factory in Japan and the Japanese government has reportedly signaled that it would welcome further TSMC projects and presence in the country. The factory currently being built is set to prioritize less high-tech chips such as those in automobiles. However, it could also be adjusted to take on more complicated chip manufacturing.
As China puts pressure on Taiwan’s independence, other tech firms have also moved some business out of the area. iPhone manufacturer Foxconn, which recently reported it wants to manufacture Tesla EVs, has also moved some of its industry to India factories.
TSMC has expressed concerns before about the state of affairs between China and Taiwan. The company stated that if China were to invade Taiwan and seize TMSC factories, the facilities would be rendered pretty much useless since it is a sophisticated manufacturing process that TMSC staff are specially trained to handle. The company has also moved to build a factory in the United States with the help of funding from the CHIPs Act of 2022.
As tensions continue to stiffen with China and Taiwan, it’s looking increasingly likely that TSMC may move even more of its business to lessen the impact on its business. Stay tuned as we continue to follow for further updates.
TJ Denzer posted a new article, Taiwan Semiconductor may expand to Japan as tensions with China grow
Smart move. Japan's a good match for the Taiwanese work culture, and has the well-educated workforce. TSMC knows China intends to supplant them with multiple CCP-funded chip fabs and must diversify production. Meanwhile, a changing political landscape in Taiwan has led to many Taiwanese businesses to pivot away from China-based production and towards Southeast Asia and old frenemies Japan and USA.