TSMC eyes Japan, US expansion to meet chip demand

Taiwan Semiconductor Manufacturing Co. (TSMC) signaled plans to build new factories in Japan and the US, riding on a pandemic-led surge in demand for chips that power smartphones, laptops, and cars.

TSMC, which posted record quarterly sales and forecast higher revenue for the current quarter, is currently in the due diligence process to do a wafer fabrication plant in Japan, says its CEO, C.C. Wei.

The company would also expand production capacity in China and may further expand its $12 billion factory in Arizona, USA.

There is concern over the concentration of TSMC's chipmaking capability in Taiwan, which is geographically close to political rival China that does not rule out the use of force to bring Taiwan under its control.

While TSMC's overseas fabs are not initially able to match the costs of manufacturing operations in Taiwan, the company is seeking to work with governments to minimize the cost gap, said TSMC Chairman Mark Liu said during an analyst call.

TSMC has the most sophisticated technology for making cutting-edge chips.