TSMC, the company behind Apple’s A17 Pro and M3 chipsets based on 3nm fabrication technology, is weighing a third manufacturing plant in Japan to cater to the increased demand for advanced chips that are powerful and efficient at the same time.
TSMC Wants Japan To Become The Global Chip Manufacturing Hub
According to a report by Bloomberg, TSMC is planning to build a third manufacturing unit in Japan that would make 3nm chips, which could turn the “East Asian nation into a major global chipmaking hub.” The report cites TSMC’s supply chain partners, who have been told the company is considering a third factory codenamed “TSMC Fab-23 Phase 3” in Kumamoto.
The Second Fab Is In The Works
Currently, the chip manufacturer is in the process of building another manufacturing unit in Japan for less advanced chips. It has gathered investments from firms like Sony Group and Denso Corp., for making 12nm chips. Further, the company also plans to create another fab for making 5nm chips as early as 2025.
A Third Fab Would Bring In Billion Of Dollars
As and when TSMC manages to make the 3nm chips in Japan, it could be beneficial for the economy, primarily since many leaders in the tech space, including Nvidia and Apple, rely on the company for its cutting-edge chips. The report mentions that the number of Japanese companies that require such chips is low at present, but in the near future, there will be a surge in demand due to technological advancements like artificial general intelligence, autonomous driving, etc.
It is important to mention that TSMC is one of the world’s largest chip manufacturers. The 3nm fabrication technology pioneered by the company has uses in the most advanced technological equipment, including cloud servers, supercomputers, and consumer-grade devices, such as smartphones, laptops, tablets, and more.