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Apple Supplier TSMC Invited by Japan to Build Joint Chip Plant: Report

By Ding Yi / Jul 20, 2020 04:05 PM / World

Japan is looking to invite Apple supplier Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and other global chipmakers to build an advanced manufacturing plant alongside domestic chip equipment suppliers in the hope of capitalizing on their technologies to bolster its chip industry, according to a report by Yomiuri Daily on Sunday.

The news comes two months after TSMC unveiled plans to build a $12 billion semiconductor manufacturing facility in the U.S. state of Arizona which will produce state-of-the-art five-nanometer chips that can be used in advanced defense and communications devices.

The Japanese government is planning to offer a total of several billion dollars to overseas chipmakers joining the project over the following few years, the Yomiuri Daily reported, without citing sources. The report gave no timeline for the project.

TSMC has not yet responded to Caixin’s request for comment.

In the second quarter of 2020, TSMC saw its net profit surge 81% year-on-year to NT$120.8 billion ($4.1 billion), the company said, despite a new U.S. rule limiting TSMC and other companies from supplying chips made with U.S. technology to Huawei.

The company also predicted that its business will be driven by stronger demand for its 5-nanometer and 7-nanometer technologies in the third quarter.

As one of the leaders in the global chipmaking industry, TSMC reportedly expects to mass-produce 3-nanometer chips in 2022. Smaller chips allow more computing power to fit into a given space.

Contact reporter Ding Yi (yiding@caixin.com)

Related: Taiwan Chipmaker TSMC Creates ‘Good Will’ With $12 Billion U.S. Factory Plan


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