Washington’s rate policy on imported chips has requested Taiwan Semiconductor Manufacturing Co TSM To postpone the construction of a second factory in Japan and instead to accelerate his American expansion.
In 2024, Taiwan Semiconductor announced plans to build a second facility in the Japanese Kumamoto prefecture as part of an investment initiative of $ 20 billion. The Japanese government has promised more than $ 8 billion in support, The Wall Street Journal reported On Friday.
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Taiwan Semiconductor is a leading supplier of NVIDIA CORP NVDA And Apple Inc Apepl supplier. The first factory started last fall with chip production and served large customers such as Toyota -Motor Tm.
Taiwan Semiconductor was originally planning to start on the second site earlier this year on the second site. Chairman CC Wei, however, stated in June that heavy traffic in the region had caused a small delay. There has been no official confirmation from Japan about the delay.
Sources that are familiar with the case now suggest that the timeline remains uncertain for the second factory, with further delays probably. According to the report, this setback is a challenge for Japan, because his economy is struggling with the 25% rates of President Trump for cars and steel.
Nevertheless, the government expects the production schedule of the factory and the output goals will remain unchanged.
The US, Japan, Europe and Taiwan supported the worldwide expansion of the Taiwanese contract chip maker after the 2020 pandemic to realize the importance of the semiconductor industry, which is indispensable for electronic devices ranging from a smartphone to a vehicle.
The disruption of the global supply chain of semiconductor after China’s pandemic led companies to stimulate their semiconductor base to prevent a semiconductor chip crisis.
In March, Wei announced an extra investment of $ 100 billion in chipping in the US (on top of $ 65 billion announced in April 2024).
Price promotion: TSM -shares fall by 2.88% to $ 228.04 at the last check Monday.
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