What's happened
Taiwan Semiconductor Manufacturing Company is making significant investments in Japan, with a new chip fab in Kikuyo and plans for 60% local procurement by 2030. Japanese government support and investments from companies like Sony, Denso, and Toyota highlight the importance of this move for Japan's semiconductor industry.
Why it matters
TSMC's expansion to Japan signifies a strategic shift in the global semiconductor supply chain, with potential positive impacts on Japan's economy, technology sector, and local suppliers. The move also reflects Japan's efforts to regain its position in the semiconductor industry and reduce reliance on foreign chipmakers.
What the papers say
The New York Times reports on TSMC's transformation of Kikuyo into a key node in Asia's chip supply chain, highlighting the significant investments and partnerships involved. The Japan Times focuses on TSMC's commitment to local procurement in Japan and the government's support for boosting local suppliers. The Independent emphasizes Japanese Prime Minister Kishida's visit to the new semiconductor plant and Japan's hopes to regain its presence in the chip industry.
How we got here
Taiwan Semiconductor Manufacturing Company, a global semiconductor leader, has expanded its operations to Japan with a new chip fab in Kikuyo. The Japanese government's support and investments from local companies underscore the importance of this move for Japan's semiconductor industry and economy.
More on these topics
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Japan is an island country of East Asia in the northwest Pacific Ocean. It borders the Sea of Japan to the west and extends from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south.
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Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company.
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Fumio Kishida is a Japanese politician and the former Minister for Foreign Affairs of Japan from 2012 to 2017. He is a member of the House of Representatives and the Liberal Democratic Party.
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Taiwan, officially the Republic of China, is a country in East Asia. Neighbouring countries include the People's Republic of China to the northwest, Japan to the northeast, and the Philippines to the south.