Asia Express
TSMC and UMC Spearhead Global Expansion Efforts with New Facilities in Japan and Singapore
January 09, 2024

Taiwan's leading semiconductor giant, TSMC, recently announced the completion of its new semiconductor plant in Kumamoto Prefecture, Japan, as reported by the Commercial Daily News on January 9. The inauguration ceremony is scheduled for February 24, with a strategic focus on specialized processes for automotive technologies. The facility aims to begin shipments by the end of 2025, targeting a monthly capacity of around 550,000 units, equivalent to a 12-inch wafer fab. The new plant operated by TSMC's subsidiary, JASM, represents an US$8.6 billion investment, supported by substantial subsidies from the Japanese government, as well as investments from Sony and Denso. 

Meanwhile, Taiwan's another semiconductor key player, UMC, also continues its overseas expansion with the completion of its new 22nm semiconductor plant in Singapore by mid-2024. The company has allocated a capital budget of US$39.8 million to meet the infrastructure and capacity needs associated with the new facility. The new plant is expected to commence production in early 2025, with an initial monthly capacity ranging between 20,000 and 30,000 wafers. 
 
Looking ahead to 2024, it is anticipated that the Taiwan semiconductor industry's shipment value will reach NT$4.29 trillion (US$134.5 billion), marking an impressive growth of 13.7% year-on-year, according to MIC (Market Intelligence & Consulting Institute), a division of the Institute for Information Industry (III). MIC reveals that various sectors within the semiconductor industry are poised for growth ranging from 10% to 20% in 2024. The wafer foundry industry sector especially is anticipated to remain a primary driver, particularly in advanced manufacturing segments.