TSMC’s First Japan Plant to Hit 60% Local Procurement by 2030

Jane Lanhee Lee, Bloomberg News

(Bloomberg) -- Taiwan Semiconductor Manufacturing Co. told Japan’s Prime Minister Fumio Kishida that the chipmaker expects to reach 60% local procurement for its first chip plant in the country by 2030.

The comment was made by TSMC Chief Executive Officer C.C. Wei during his meeting with Kishida on Saturday when the official visited the company’s plant in Kumamoto. TSMC Spokesman Nina Kao told Bloomberg News that it’s a target for indirect materials used in manufacturing process but not included in the final products, and the goal doesn’t include machinery.

Japanese officials are hoping TSMC’s arrival will help boost local suppliers’ technology and business. Tokyo has already allocated ¥476 billion ($3.1 billion) for TSMC’s first factory which was built though a joint venture between the Taiwanese chipmaker and local companies including Sony Group Corp. Japan’s government has pledged an additional ¥732 billion in subsidies for TSMC to build a second fab.

TSMC said it plans to start shipping logic chips for camera sensors and automobiles from the first facility in Kumamoto by the end of this year.