%TaiwanSemiconductor (NYSE: TSM) is expanding its global reach with a new chip plant in Japan.
The world’s largest maker of microchips and %Semiconductors says that it plans to build a second semiconductor fabrication plant in Japan to help it meet rising demand, especially for the chips used to power %ArtificialIntelligence (A.I.) applications and models.
Taiwan Semiconductor said it will start construction on the new plant by the end of 2024. The facility is scheduled to be operational in 2027.
It will be Taiwan Semiconductor’s second plant in Japan. The first plant is scheduled to start operations this year. In all, the company is investing more than $20 billion U.S. in Japan.
The expansion in Japan comes as Taiwan Semiconductor grapples with delays at its project in Arizona.
The company announced in 2022 that it would build a second semiconductor plant in the U.S. state, raising its total investment in Arizona to $40 billion U.S.
But Taiwan Semiconductor recently delayed the Arizona facility’s opening to 2028 from 2026.
The Taiwanese company produces an estimated 90% of the world’s microchips and semiconductors, supplying companies such as %Apple (NASDAQ: AAPL) and %Nvidia (NASDAQ: NVDA).
The chips made by Taiwan Semiconductor power everything from smartphones to dishwashers.
The company has been expanding abroad due to commercial pressure and encouragement from governments who don’t like the looming threat of China over Taiwan.
Taiwan Semiconductor’s stock has gained 26% over the last 12 months and currently trades at $119.38 U.S. per share.