TSMC weighs second chip plant in Japan, expansion in Europe

Chip titan's profit jumps 78% in Q4, forecasts 'decline' in 2023 first half

20230112 TSMC factory in Nanjing

A TSMC factory in Nanjing: The contract chipmaker said in December that it plans to have some 20% of its production capacity overseas. © Getty Images

CHENG TING-FANG and LAULY LI, Nikkei Asia tech correspondents

TAIPEI -- Taiwan Semiconductor Manufacturing Co. on Thursday said it is considering building a second plant in Japan and is evaluating the possibility of a first in Europe as the world's largest contract chipmaker responds to customers' demands for a more geographically diverse supply chain.

"In Europe, we are engaging with customers and partners to evaluate the possibility of building a specialty fab focusing on automotive-specific technologies, based on the demand from customers and the level of government support," TSMC CEO C.C. Wei said in an earnings call on Thursday, confirming an earlier Nikkei Asia report.

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