Exclusive: TSMC Contemplating Expansion of Advanced Chip Packaging Capacity in Japan
Taiwan’s semiconductor giant, TSMC, is contemplating the establishment of advanced packaging capacity in Japan, as per sources familiar with the matter. This move could potentially bolster Japan’s endeavors to revitalize its semiconductor industry. Although still in the preliminary stages, these discussions mark a significant development in the semiconductor landscape.
One option under consideration by TSMC involves introducing its chip on wafer on substrate (CoWoS) packaging technology to Japan. CoWoS technology is renowned for its precision, involving the stacking of chips to enhance processing capabilities, optimize space utilization, and reduce power consumption. Presently, all of TSMC’s CoWoS operations are based in Taiwan.
However, no concrete decisions have been made regarding the scale or timeline of this potential investment. TSMC, also known as Taiwan Semiconductor Manufacturing Co, has refrained from providing any comments on the matter.
The surge in demand for advanced semiconductor packaging, propelled by the burgeoning artificial intelligence sector, has prompted major chip manufacturers like TSMC, Samsung Electronics, and Intel to ramp up their packaging capacity. TSMC’s CEO, C.C. Wei, previously stated plans to double CoWoS output in the current year, with further expansions slated for 2025.
Expanding into advanced packaging would complement TSMC’s growing presence in Japan. The company has recently established one plant and announced another on the southern island of Kyushu, a burgeoning chipmaking hub. Moreover, TSMC has forged partnerships with prominent Japanese companies such as Sony and Toyota, with the total investment in these ventures expected to exceed $20 billion. Additionally, TSMC set up an advanced packaging research and development center in Ibaraki prefecture, northeast of Tokyo, in 2021.
Japan holds significant potential in the realm of advanced packaging, given its leading semiconductor materials and equipment manufacturers, increasing investments in chip fabrication capacity, and a robust customer base. With TSMC’s potential entry into the Japanese market, the semiconductor landscape is poised for further evolution, offering new opportunities for collaboration and innovation.
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