Taiwan Semiconductor considers expansion into Japan as geopolitical risk rises: report
PonyWang

As it looks to reduce geopolitical risk amid rising Sino-American tensions, Taiwan Semiconductor (NYSE:TSM) is discussing an expansion into Japan, The Wall Street Journal
reported.
The news outlet, citing people familiar with the matter, noted that no decision has been made yet and the company is still studying whether an expansion is feasible, but the Japanese government has made overtures to the world's largest semiconductor foundry manufacturer.
Taiwan Semiconductor (TSM) is already building a wafer fab plant in Kumamoto, Japan, with the multi-billion plant having been announced in November 2021.
The new plant is slated to begin production by the end of 2024 and will use less advanced 22-nanometer and 28-nanometer processes. However, if Taiwan Semiconductor (TSM) were to expand beyond the current plant, it would be for more advanced chips, The Journal added, citing sources familiar with the matter.
The company makes chips for a number of clients around the world, including Apple (AAPL), Nvidia (NVDA), Qualcomm (QCOM), Advanced Micro Devices (AMD) and others.
Taiwan Semiconductor (TSM) shares fell nearly 1.4% to $62.85 in premarket trading.
However, with the Biden Administration having recently imposed export controls on what chip equipment can be sent to China, it has ratcheted up tensions between the two countries and the semiconductor industry is caught in the middle.
Separately on Wednesday, Taiwan Semiconductor (TSM) Chairman Mark Liu said that rising tensions between the U.S. and China and Taiwan and China have ushered in "more serious" challenges for the chip industry.
"The U.S.-China trade conflict and the escalation of cross-Strait tensions have brought more serious challenges to all industries, including the semiconductor industry," Liu said at the Taiwan Semiconductor Industry Association's annual convention, according to Reuters.
Earlier this month, it was reported that Taiwan Semiconductor (TSM) was among the companies that were granted one-year exemptions to the new export new rules, letting them continue receiving chip-making equipment in China.