TSMC Accelerates Global Expansion - Secures KRW 2.6 Trillion in Subsidies from Japan and China

The headquarters of Taiwan Semiconductor Manufacturing Company (TSMC) in Hsinchu, Taiwan. (Newsis)

Taiwan's TSMC, the world's largest semiconductor foundry, is accelerating its global expansion with substantial subsidies from Japan and China.

According to Taiwanese media reports on the 26th, TSMC received a total of TWD 62.552 billion (approximately KRW 2.6 trillion) in subsidies for the construction and operation of its Kumamoto plant in Japan and Nanjing plant in China from 2022 to the first half of this year.

TSMC plans to begin mass production of various process products, ranging from 12nm to 28nm, at its Kumamoto plant starting in the fourth quarter of this year. The second plant is scheduled to produce more advanced process products, such as 6nm and 7nm, beginning in 2027.

In addition, the Nanjing plant in China is expanding its operations with support for real estate, factory equipment purchases, and production operation costs.

While TSMC is expected to receive USD 6.6 billion (approximately KRW 8.7 trillion) in subsidies from the U.S. Department of Commerce for the establishment of its Phoenix plant in the United States, the support has yet to be provided.

The first Phoenix plant is set to begin mass production of 4nm process products in the first half of 2024, with the second plant to produce 2nm process products starting in 2028. The third plant will apply advanced process technologies below 2nm.

TSMC is also speeding up its entry into the European market by recently breaking ground on a new plant in Dresden, Germany.

The nanometer unit refers to the width of semiconductor circuits, with narrower widths offering advantages such as lower power consumption and faster processing speeds. The current leading production technology is 3nm, and TSMC is also considered a leader in next-generation 2nm processes.