How Japan Pulled Off an Early Victory in the Race to Make More Chips

  • TSMC site called a ‘Nightless Castle’ with its 24-hour workday
  • Sony played critical role in helping TSMC plant construction
Taiwan Semiconductor Manufacturing Co.’s factory in Kikuyo in May 2023. Photographer: Toru Hanai/Bloomberg
Lock
This article is for subscribers only.

When Taiwan Semiconductor Manufacturing Co. unveiled plans to begin building a new chip fabrication facility in Japan in 2022 and start production in 2024, it looked like an implausibly aggressive schedule. Chip plants often take three years to complete, and, although the Taiwanese company had moved faster on its own turf, this would be its first such attempt in Japan — where it would have to navigate foreign bureaucracies and regulations.

Yet on Feb. 24, TSMC will officially open its Kumamoto fab, putting it on track to begin mass production later this year. The ribbon-cutting marks an early victory for Japan as governments around the world race to establish domestic chip capabilities in the wake of Covid-era disruptions and growing geopolitical tensions. While the US has also courted TSMC — the leading producer of the most advanced chips — the company has already pushed back start dates for both of its planned Arizona facilities after clashes with labor unions and delays in subsidy allocations.