DENSO Corp. is investing $350 million for a 10% stake in Japan Advanced Semiconductor Manufacturing Inc. (JASM), the new wafer fab facility majority owned by Taiwan Semiconductor Manufacturing Co. Ltd (TSMC) located in Kumamoto Prefecture.

The construction of the JASM fab is scheduled to begin this year, with production targeted to begin by the end of 2024. To support market demand, TSMC will also enhance JASM’s capabilities with 12/16nm FinFET process technology in addition to the previously announced 22/28nm process, and increase monthly production capacity to 55,000 12-inch wafers. With the additional capacity, the total capital expenditure for JASM’s Kumamoto fab is estimated to be approximately $8.6 billion with strong support from the Japanese government. The fab is expected to directly create about 1,700 high-tech professional jobs.

In a statement, TSMC CEO Dr. CC Wei said, “TSMC is very glad to welcome DENSO’s participation in JASM to enable fresh innovations in the future of transportation together. JASM is not only an opportunity for TSMC to support growing market demand for specialty technologies, but it also enables us to leverage Japan’s top-notch semiconductor talent and contribute to the growth of the global semiconductor ecosystem.”

“While the global demand for semiconductors is expected to grow, we expect JASM to contribute to securing a stable supply of logic wafers, not only for us but also the overall industry. We are very pleased to have DENSO as a new member, and we look forward to working with them to support the launch of JASM,” said Terushi Shimizu, President and CEO of Sony Semiconductor Solutions.

When the project was announced last year, Sony said it plans to make an equity investment of around $500 million, which will represent under 20% stake in the new fab.

“Semiconductors are becoming increasingly important in the automotive industry as mobility technologies evolve, including automated driving and electrification,” said Koji Arima, President and CEO of DENSO. “Through this partnership, we contribute to the stable supply of semiconductors over the medium to long term and thus to the automotive industry.”

The closing of the transaction between JASM and DENSO is subject to customary closing conditions.

By: DocMemory
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