MOEA approves TSMC's additional investment plans for Japan, U.S.

Taipei, June 27 (CNA) The Ministry of Economic Affairs (MOEA) on Thursday approved four Taiwanese overseas investment plans totaling roughly US$10.51 billion, of which US$10.26 billion will be contributed by chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC).

According to the ministry's Department of Investment Review, TSMC will invest an additional US$5.26 billion into its majority-owned Japan Advanced Semiconductor Manufacturing (JASM), while US$5 billion will go to its Arizona expansion in the United States.

JASM is a joint venture between TSMC, Sony Semiconductor Solutions Corp. and DENSO Corp. Its first plant in Kumamoto Prefecture was inaugurated on Feb. 24 this year, with mass production scheduled to begin in the fourth quarter.

Most of the US$5.26 billion will be invested to build JASM's second fab, the department said.

That fab is expected to produce 12-inch wafers using 6 nanometer/7nm, 12nm/16nm and 40nm processes, the department added.

The other US$5 billion additional investment, it said, involves TSMC's second Arizona fab, which is expected to produce wafers using the advanced 2nm or 3nm processes.

The MOEA said it decided to approve the TSMC plans because even though the additional investments mean money heading overseas, they could help deepen the company's cooperation with local supply chain operators.

In the long run, this could also help enhance the competitiveness of the domestic semiconductor industry on the international stage, the ministry added.

Meanwhile, the department said the two other approved outbound plans include Walsin Lihwa Corp.'s increased investment in Singapore, and Lite-On Technology Corp.'s capital injection into Japanese firm Cosel Co., Ltd.