An investment plan by Taiwan Semiconductor Manufacturing Co. (TSMC) to establish a fab in Japan was approved by Taiwan's Investment Commission on Monday, which hailed it as a milestone in high-tech cooperation between the two countries.

The commission said it had approved the investment project to allow TSMC to help secure a stable supply of wafers for Japanese customers.

As Taiwan remains ahead of Japan by at least one generation in terms of chip production technology, "there should be no fear of leakage concerning high-end chip process technology," the commission said.

Under the project, TSMC will spend 237.8 billion Japanese yen (US$2.09 billion) to establish a joint venture, Japan Advanced Semiconductor Manufacturing, Inc. (JASM), with Sony Semiconductor Solutions Corp. (SSS) in Kumamoto Prefecture to provide foundry service with initial technology of 22/28 nanometer processes to address the strong global market demand for specialty technology.

Based on agreements reached between TSMC and SSS, TSMC plans to hold an equity stake of as high as 81 percent in JASM.

The construction of JASM's fab in Kumamoto is scheduled to begin in 2022 and mass production is slated to kick off in 2024.

The fab will reportedly directly create about 1,500 high-tech professional jobs and have a monthly production capacity of 45,000 12-inch wafers.

By: DocMemory
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