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▼ TSMC Explores Advanced Chip Packaging Expansion In Japan
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Taiwan's semiconductor giant, TSMC, is reportedly considering establishing advanced chip packaging capacity in Japan, marking a potentially significant move that could further energise Japan's semiconductor industry.
According to Reuters, sources familiar with the matter disclosed that discussions are in the early stages, preferring anonymity due to the confidential nature of the information.
One source indicated that TSMC is contemplating introducing its chip-on-wafer-on-substrate (CoWoS) packaging technology to Japan, a sophisticated process known for stacking chips atop each other, enhancing processing capabilities, saving space, and reducing power consumption.
Presently, all of TSMC's CoWoS capacity resides in Taiwan, with no final decisions made regarding the scale or timeline of this potential investment.
The demand for advanced semiconductor packaging has witnessed a global surge, particularly driven by the proliferation of artificial intelligence applications.
Consequently, major chipmakers like TSMC, Samsung Electronics, and Intel are ramping up their packaging capacity to meet this escalating demand.
TSMC's Chief Executive, C.C. Wei, revealed earlier this year the company's plans to double its CoWoS output in 2024, with further expansions slated for 2025.
The prospective establishment of advanced packaging capacity in Japan would complement TSMC's existing operations in the country, including recent plant constructions in Kyushu and collaboration ventures with leading Japanese companies like Sony and Toyota, with total investments exceeding $20 billion.
TSMC's strategic foray into Japan aligns with the country's ambition to bolster its semiconductor industry, leveraging its strong ecosystem comprising leading materials and equipment manufacturers, growing chip fabrication investments, and a robust customer base.
An official from Japan's industry ministry expressed optimism regarding Japan's readiness to accommodate advanced packaging endeavours, highlighting the supportive environment for such initiatives.
However, analysts caution that the scale of TSMC's potential investment in Japan may be limited, as the demand for CoWoS packaging within Japan remains uncertain, with the majority of TSMC's current CoWoS customers situated in the United States.
The Japanese government's proactive stance in revitalising its semiconductor sector has attracted significant attention from global chip firms.
TSMC's ventures in Japan have been buoyed by substantial subsidies from the Japanese government, which views semiconductor development as crucial for its economic security.
This proactive approach has also lured other industry players, including Intel, which is reportedly considering establishing an advanced packaging research facility in Japan to strengthen its ties with local chip supply chain companies.
Similarly, Samsung Electronics is setting up an advanced packaging research facility in Yokohama, supported by government initiatives, and exploring partnerships with Japanese companies for materials procurement, aiming to compete effectively in high bandwidth memory chips.
According to Reuters, sources familiar with the matter disclosed that discussions are in the early stages, preferring anonymity due to the confidential nature of the information.
One source indicated that TSMC is contemplating introducing its chip-on-wafer-on-substrate (CoWoS) packaging technology to Japan, a sophisticated process known for stacking chips atop each other, enhancing processing capabilities, saving space, and reducing power consumption.
Presently, all of TSMC's CoWoS capacity resides in Taiwan, with no final decisions made regarding the scale or timeline of this potential investment.
The demand for advanced semiconductor packaging has witnessed a global surge, particularly driven by the proliferation of artificial intelligence applications.
Consequently, major chipmakers like TSMC, Samsung Electronics, and Intel are ramping up their packaging capacity to meet this escalating demand.
TSMC's Chief Executive, C.C. Wei, revealed earlier this year the company's plans to double its CoWoS output in 2024, with further expansions slated for 2025.
The prospective establishment of advanced packaging capacity in Japan would complement TSMC's existing operations in the country, including recent plant constructions in Kyushu and collaboration ventures with leading Japanese companies like Sony and Toyota, with total investments exceeding $20 billion.
TSMC's strategic foray into Japan aligns with the country's ambition to bolster its semiconductor industry, leveraging its strong ecosystem comprising leading materials and equipment manufacturers, growing chip fabrication investments, and a robust customer base.
An official from Japan's industry ministry expressed optimism regarding Japan's readiness to accommodate advanced packaging endeavours, highlighting the supportive environment for such initiatives.
However, analysts caution that the scale of TSMC's potential investment in Japan may be limited, as the demand for CoWoS packaging within Japan remains uncertain, with the majority of TSMC's current CoWoS customers situated in the United States.
The Japanese government's proactive stance in revitalising its semiconductor sector has attracted significant attention from global chip firms.
TSMC's ventures in Japan have been buoyed by substantial subsidies from the Japanese government, which views semiconductor development as crucial for its economic security.
This proactive approach has also lured other industry players, including Intel, which is reportedly considering establishing an advanced packaging research facility in Japan to strengthen its ties with local chip supply chain companies.
Similarly, Samsung Electronics is setting up an advanced packaging research facility in Yokohama, supported by government initiatives, and exploring partnerships with Japanese companies for materials procurement, aiming to compete effectively in high bandwidth memory chips.
- March 18, 2024
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