TSMC’s Joint Venture, JASM, to Begin Operations in Japan, Toyota to Join as Shareholder
In a forward-looking strategic move, TSMC’s joint venture, JASM, has pledged to kick off their operations in Japan by the end of this year. Within the premises of an upcoming factory, the first of its kind, the team is all geared up to set the production wheels in motion. Furthermore, as per the official statements, a second factory is projected to be operational by the end of 2027. Lending weight to the JASM cohort of shareholders, the renowned Toyota Motor Corporation of Japan has expressed its intentions to come on board.
Shareholder Structure and Investment Details
It’s worth remembering that Denso, the principal component supplier to Toyota’s production line, was an original shareholder of JASM. The company even insisted on the manufacture of 12-nm components at the first factory in Kumamoto prefecture, considering that 22-nm and 28-nm processes were sufficient for Sony. However, this dynamic has seen a shift following Toyota’s direct participation in JASM capital. Nikkei Asian Review discloses that the share distribution will hence be restructured with TSMC maintaining 86.5% of shares, 6% going to Sony, Denso settling for 5.5% and Toyota capping at 2%.
Bearing in mind the cumulative investments, inclusive of all JASM shareholder costs and the construction of the second factory, the amount will surpass $20 billion. Japanese government representatives have shown readiness to provide subsidies up to $5.2 billion for this novel TSMC establishment in Kumamoto prefecture.
By the end of 2027, this second factory is set to master the production of 6-nm products, initiating the construction within this year. TSMC leadership currently has under consideration the proposition of a third factory premises in Japan. However, as of now, no official decisions have been made.