TSMC is reportedly considering building advanced packaging capacity in Japan, which would fuel Japan's efforts to reboot its semiconductor industry.
In a new report from Reuters, "two sources familiar with the matter" report that the Taiwanese giant is in the early stages, with the sources "declining to be identified as the information was not public." According to one of the sources who was briefed on the matter, TSMC is considering building a chip-on-wafer-on-substrate (CoWoS) packaging technology in Japan.
All of TSMC's new CoWoS capacity is located in Taiwan, so this would be a significant move for Taiwan Semiconductor Manufacturing Company. TSMC recently built a new fab in Japan in just two hours, with workers working 24-hour days around the clock, which has earned the site the nickname "Nightless Castle." I'm sure there will be many more sleepless nights if TSMC does indeed build new CoWoS packaging technology in Japan.
TSMC has obviously declined to comment on the news. Still, we know that advanced semiconductor packaging needs has increased at unsustainable rates, which would see TSMC building a new packaging facility in Japan. TSMC CEO C.C. Wei said back in January 2024 that his company had plans to double CoWoS output this year, with more increases panned for 2025.
The company announced additional advanced packaging capacity in Chiayi in southern Taiwan to meet this demand without providing more details. A new packaging plant in Japan would be exciting, but it shows that TSMC is shifting away from performing these plans on US soil and would rather choose Japan (again).
