TSMC chairman says Japan chip plant is a special case

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TSMC chairman says Japan chip plant is a special case

Taiwan Semiconductor Manufacturing Co.'s chairman said Thursday its Japan venture with a Sony Group Corp. subsidiary is a special case as the company typically seeks full ownership in overseas plants.

The world's largest contract manufacturer of semiconductor chips will build a $7 billion plant in Kumamoto Prefecture, as the company reported record net profit and sales in the business year through December, according to Mark Liu.

In an online earnings call, Liu said that they have a very large customer who has a single technology, and we can also leverage their operating experience in Japan, which helps ramp up the learning curve.

A global chip shortage, TSMC announced in November the construction of the foundry in partnership with Sony Semiconductor Solutions Corp.

The construction is scheduled to begin this year, with production expected to begin by the end of 2024. Sony Semiconductor Solutions will invest $500 million, representing an equity stake of less than 20%.

The TSMC's first chip factory in Japan is expected to create 1,500 jobs for high-tech talent, the two companies said.

In December, the Investment Commission of Taiwan approved the investment plan, supported by the Japanese government.

In the year through December, TSMC reported a net profit of 596.5 billion New Taiwan dollarsTaiwan dollars $21.62 billion, up 15.2% from a year earlier, on sales of NT $1.58 trillion, up 18.5%.

Wendell Huang, TSMC's vice president and chief financial officer, said the company will likely see continued recovery in the automotive segment, high-performance computing-related demand, as well as milder smartphone seasonality.