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In Japan, TSMC Considers Advanced Chip Packaging Capacity

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In Japan, TSMC Considers Advanced Chip Packaging Capacity

(CTN News) – A move by Taiwan’s TSMC to build advanced packaging capacity in Japan could boost Japan’s semiconductor industry’s revival, according to two sources familiar with the matter.

Their deliberations are in an early stage, they said, declining to be identified as the information is not public.

One of the sources who was briefed on the matter said the chipmaking giant may bring its chip on wafer on substrate (CoWoS) packaging technology to Japan.

By stacking chips on top of one another, CoWoS boosts processing power while saving space and reducing power consumption.

Taiwan is TSMC’s sole location for CoWoS manufacturing.

According to the source, no decisions have been made about the size or timeline for a potential investment.

There was no comment from Taiwan Semiconductor Manufacturing Co., otherwise known as TSMC.

TSMC, Samsung Electronics, and Intel have all increased their capacity due to the surge in demand for advanced semiconductor packaging.

Wei announced in January that TSMC intends to double CoWos output this year, with further increases scheduled for 2025.

TSMC announced Monday it would expand advanced packaging capacity in Chiayi, in southern Taiwan, in response to strong market demand.

According to the island’s official Central News Agency, the construction of Chiayi CoWoS plant is scheduled to begin in early May.


In Japan, TSMC has opened one plant and announced another – both on the southern island of Kyushu, a major chipmaking hub – so building advanced packaging capacity would expand its operations.

A total investment of over $20 billion is expected in TSMC’s Japan venture, which includes Sony and Toyota.

A packaging research and development center was also established by the chipmaker in Ibaraki prefecture, northeast of Tokyo, in 2021.

As a leading manufacturer of semiconductor materials and equipment with growing investments in chip fabrication capacity and a strong customer base, Japan is well positioned to take on a larger role in advanced packaging.

A senior official at the Japanese industry ministry said advanced packaging would be welcomed in Japan if it can be supported by the ecosystem.

TSMC will, however, likely have limited capacity if it builds advanced packaging capacity in Japan, according to TrendForce analyst Joanne Chiao.

She added that it was too early to determine how much demand there would be for CoWoS packaging within Japan, and most of TSMC’s current CoWoS customers are in the United States.

The Japanese government has generously subsidized TSMC’s plans for Japan, which sees semiconductors as one of its key economic assets after losing ground to South Korea and Taiwan.

A range of chip companies from Taiwan and elsewhere are investing as a result.

As part of its strategy to deepen its relationship with local chip supply chain companies, Intel is also looking to establish a packaging research facility in Japan.

A Samsung packaging research facility will be built in Yokohama, southwest of Tokyo, with government support.

In addition, the South Korean chipmaker is in talks with companies in Japan and elsewhere about procuring materials as it prepares to introduce a packaging technology similar to its rival SK Hynix’s.


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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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