TSMC and Sony Semiconductor Solutions (SSS) have jointly announced plans to establish a joint-venture foundry in Kumamoto, Japan to initially provide 22nm and 28nm process manufacturing for specialty ICs. The foundry is targeting production by 2024.

The JV foundry will be named Japan Advanced Semiconductor Manufacturing (JASM) and will operate a fab with construction scheduled to kick off in 2022. Production at the fab is targeted to begin by the end of 2024, according to the joint statement. The fab is designed for a production capacity of 45,000 12-inch wafers monthly.

Under definitive agreements reached between TSMC and SSS, SSS plans to make an equity investment in JASM of approximately US$0.5 billion, which will represent a less than 20% equity stake in JASM. The closing of the transaction between TSMC and SSS is subject to customary closing conditions.

Initial capex in the JV foundry project is estimated at approximately US$7 billion and will have strong support from the Japan government. JASM is also expected to create about 1,500 high-tech professional jobs locally in Japan.

"While the global semiconductor shortage is expected to be prolonged, we expect the partnership with TSMC to contribute to securing a stable supply of logic wafers, not only for us but also for the overall industry," said SSS president and CEO Terushi Shimizu in a statement. "We believe that further strengthening and deepening our partnership with TSMC, which has the world's leading semiconductor production technology, is extremely meaningful for the Sony Group."

Also in the same statement, TSMC CEO CC Wei noted "we are pleased to have the support of a leading player and our long-time customer, Sony, to supply the market with an all-new fab in Japan, and also are excited at the opportunity to bring more Japanese talent into TSMC's global family."

SSS is the global leader in image sensors. It also supplies a variety of other parts including microdisplays, LSIs and laser diodes.

TSMC established its TSMC Japan subsidiary in 1997, and set up the Japan Design Center in 2019 to serve its global customers. TSMC is also working with its Japan-based partners to expand the frontiers of advanced packaging technology with the 3DIC Research Center in Ibaraki Prefecture.

In a separate statement, TSMC disclosed its board of directors had approved an equity investment of up to US$2.12 billion to establish a TSMC-majority-owned subsidiary in Japan to provide foundry services.

TSMC's board also approved capital appropriations of about US$9.04 billion for the installation and upgrade of advanced technology capacity, installation of mature and specialty technology capacity, installation of advanced packaging capacity, as well as fab construction, installation of fab facility systems and capitalized leased assets, and first-quarter 2022 R&D capital investments and sustaining capital expenditures.

TSMC to set up majority-owned foundry subsidiary in Japan
Photo: Michael Lee, Digitimes, November 2021