East Asia “Deep Coverage Note” (108th)
It was finally announced abruptly on October 14th at TSMC’s third quarter online earnings report in Taiwan. We are proud that sales in the third quarter increased by 11.4% on an NT basis and 12% on a dollar basis, and gross profit margin increased by 1.3 points from the previous quarter to 51.3%. After being reported, CCWei, Deputy Chairman and CEO, said:
“I would like to talk about our factory plans in Japan. We are competing for industry-leading technology, the world’s largest capacity, efficient and cost-effective production, and better service to our customers. We are expanding our manufacturing bases to expand and strengthen our advantage. Our global production base expansion strategy is based on consideration of customer needs, business opportunities, operating efficiency and economic costs.
After conducting a value and risk survey of the investee, it announced that it intends to build a special technology factory in Japan with the approval of the board of directors. This project received strong involvement with the support of both our customers and the Government of Japan.
This factory is a semiconductor wafer factory that uses 22-28 nanometer technology. Construction will begin in 2022 and will start at the end of 2024. Details will be provided after obtaining the approval of the Board of Directors. “
Welcome to the whole country with a huge amount of support
The remark that CEO Wei said was a big news in Japan. The next day’s “Nikkei” will be published on the front page. Prime Minister Fumio Kishida commented on this matter at a press conference at night, despite the fact that it was a very busy day for the dissolution of the House of Representatives.
“It was announced today that a Taiwanese company that almost monopolizes the manufacture of cutting-edge semiconductors will enter Japan. This will improve the indispensability and autonomy of Japan’s semiconductor industry, and is expected to make a significant contribution to economic security. We will also include support for large-scale private investment of TSMC totaling 1 trillion yen in economic measures. “