TSMC Explores Building Advanced Packaging Capacity in Japan, Boosting Semiconductor Industry Reboot

TSMC Explores Building Advanced Packaging Capacity in Japan, Boosting Semiconductor Industry Reboot

Key Points:

  • TSMC is considering building advanced packaging capacity in Japan to support semiconductor industry reboot efforts, with details yet to be finalized.
  • Introducing CoWoS packaging technology could address surging demand for advanced semiconductor packaging.
  • Partnerships with local companies and substantial government subsidies support TSMC’s plans in Japan.
  • Other industry players, including Intel and Samsung, are also exploring opportunities in Japan to strengthen their semiconductor presence.

Sources familiar with the matter revealed that Taiwan’s TSMC is considering establishing advanced packaging capacity in Japan to bolster Japan’s semiconductor industry revival efforts. While the discussions are in preliminary stages, and details are scarce, the move could signify a significant step forward for Japan’s semiconductor ecosystem.

As disclosed by sources, TSMC is considering introducing its chip-on-wafer-on-the-substrate (CoWoS) packaging technology to Japan. CoWoS technology involves stacking chips atop one another, enhancing processing power, optimizing space utilization, and reducing power consumption, thus catering to the surging demand for advanced semiconductor packaging driven by the artificial intelligence boom.

Although TSMC has not made any firm decisions regarding the scale or timeline of potential investments, the company intends to double its CoWoS output in 2025, with plans for further increases this year. The establishment of advanced packaging capacity would complement TSMC’s existing operations in Japan, where it has recently constructed one plant and announced another on the southern island of Kyushu, a burgeoning chipmaking hub.

Partnering with prominent Japanese companies like Sony and Toyota, TSMC aims to deepen its foothold in the Japanese semiconductor market, with total investments projected to exceed $20 billion. Additionally, TSMC has established an advanced packaging research and development center in Ibaraki prefecture, northeast of Tokyo, underscoring its commitment to the region.

Japan’s robust semiconductor materials and equipment industry, coupled with growing investment in chip fabrication capacity and a solid customer base, positions the country favorably to play a significant role in advanced packaging. Despite potential challenges, such as limited demand for CoWoS packaging within Japan, TSMC’s plans align with Japan’s strategic interests in bolstering its semiconductor capabilities.

Furthermore, TSMC’s endeavors in Japan have been buoyed by substantial subsidies from the Japanese government, reflecting the country’s determination to regain semiconductor leadership. Other industry players, including Intel and Samsung, are also exploring opportunities to strengthen their presence in Japan’s semiconductor landscape, signaling a broader trend of collaboration and investment in the region.

TechGolly editorial team led by Al Mahmud Al Mamun. He worked as an Editor-in-Chief at a world-leading professional research Magazine. Rasel Hossain and Enamul Kabir are supporting as Managing Editor. Our team is intercorporate with technologists, researchers, and technology writers. We have substantial knowledge and background in Information Technology (IT), Artificial Intelligence (AI), and Embedded Technology.

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