Taiwan Semi may start advanced production at second Japanese plant; country awaiting waiver extension
shih-wei
The world's largest semiconductor foundry, Taiwan Semiconductor (NYSE:TSM), is reportedly looking to ramp up additional production in Japan even as its home country is still awaiting word of a potential waiver extension from the U.S. regarding Chinese exports.
Based in Hsinchu, Taiwan, Taiwan Semiconductor (TSM) is reportedly going to begin producing 6-nanometer advanced processors at its plant in Kumamoto, Japan in 2027, Asian news outlet Nikkei reported.
The Japanese government is reportedly considering roughly $6B in subsidies for the plant, which could have a total cost exceeding $7B, the news outlet added.
In July, it was reported Taiwan Semiconductor (TSM) was getting ready to start construction of a second factory in Japan in April 2024.
Taiwan Semiconductor (TSM) is already building a wafer fab plant in Kumamoto, Japan, with the multi-billion plant having been announced in November 2021. Production at the first Kumamoto factory is expected to start in December 2024.
The global foundry makes chips for a number of clients around the world, including Apple (AAPL), Nvidia (NVDA), Qualcomm (QCOM), AMD (AMD) and others.
Taiwan Semiconductor (TSM) shares rose 1.3% in mid-day trading on Thursday.
The news comes as Taiwan's Economy Minister Wang Mei-hua said the country is still awaiting to hear whether Taiwanese chipmakers will be granted a waiver extension to supply chip equipment to their factories in China. 
"Whether it will be the same treatment as Samsung and SK Hynix, it's up to the announcement from the U.S. government," Wang told reporters, according to Reuters.
Taiwan Semiconductor (TSM) received a one-year waiver in October 2022, but Wang said on Thursday that "we'll have to see whether the U.S. government will further loosen the measures." It was reported earlier this week that Taiwan Semi (TSM) could be granted a waiver extension for its Chinese operations, but that vital tech upgrades could prove difficult.
Samsung (OTCPK:SSNLF) and SK Hynix were recently granted waivers to buy the equipment they require to maintain and expand their large chipmaking operations in China, South Korea's presidential office said in a statement.
In October 2022, the Biden Administration published rules that said companies seeking verification to sell to China would be faced with a "presumption of denial" standard if they produce DRAM chips below 18 nanometers, above 128 layers for NAND chips and below 14 nanometers for logic chips and would have to apply for a license.
The White House has recently discussed giving China an additional warning that it will update its rules on export controls for semiconductors and semiconductor equipment, a decision that could help stabilize the relations between the two countries.

More on Taiwan Semiconductor

TSMC: Buy Ahead Of Earnings On Industry Recovery
Taiwan Semiconductor - Maintaining Buy: Headwinds Priced In And Rebound Ahead
TSMC: Arizona Plant Delay Is Just Short-Term Noise; Reiterate Strong Buy
Taiwan Semiconductor may get US waiver for chip equipment to China - report
Taiwan Semi rises as Taiwan exports surge, may receive more AI orders next year