Outbound TSMC thriving in Japan, stalling in US

According to Chinese media accounts, work on Chinese chipmaker TSMC’s fresh silicon shop in Kumamoto on the Japanese island of Kyushu is moving along quickly and might even be ahead of schedule. This development is in stark contrast to TSMC’s shop task, which is about a month behind schedule and is located in the US state of Arizona.

Questions about the disparity between US coverage and South Asian priorities are raised by the difference, which is based on the investment structure, organizational culture, and social expectations. & nbsp,

The world’s top chipmaker, TSMC, has received strong support from both Chinese and US government officials. In Phoenix, Arizona, in December 2022, President Joe Biden declared,” American manufacturing is back, folks ,” while standing in front of an American flag and a banner that read” A Future Made in America.” He praised TSMC and the part it is playing in reviving the semiconductor industry in America in proper notes.

Yasutoshi Nishimura, the Japanese Minister of Economy, Trade, and Industry, posted the following message in Japanese on X ( Twitter ) at the start of October 2023:

” Mark Liu, chairman of Taiwan’s TSMC, and I had a gathering. An important national initiative aimed at revitalizing Japan’s semiconductor industry is the construction of a factory in Kumamoto by JASM ] Japan Advanced Semiconductor Manufacturing. This collaboration between TSMC, Sony, and Denso. In Kumamoto, cooperation is developing as Chinese manufacturers of materials and equipment and other related businesses announce novel investments one after another. We will keep working together and cooperating, including in upcoming advances.

Since April 2022, the second shop of TSMC in Kumamoto has been operating without a hitch. The project has been managed by lots of TSMC technicians who have been sent from Taiwan, and hundreds more will be sent by the company’s suppliers, according to the Asian media. Additionally, more than 300 Chinese personnel have been trained by TSMC so far in Taiwan. & nbsp,

Equipment assembly in Kumamoto is expected to start this month and be finished by the following spring. Production is expected to begin before the date of 2024 expires.

The new chip flower for TSMC in Kumamoto Prefecture, Japan, is currently under construction. Facebook / CNA image

However, what TSMC refers to as a shortage of skilled workers has slowed progress in the US. Bureaucratic red tape and regional labor organizations that oppose the use of imported workers have exacerbated this lack. & nbsp,

Additionally, the labor unions have expressed dissatisfaction with inadequate business, lax safety standards, and absurd work schedules. According to American internet, non-union immigrants and out-of-state employees are frequently employed. & nbsp,

The loud assistance for union labor from the Biden administration may be one cause of the issue. If you don’t mind my telling, union workers are the best in the world, according to Biden, who stated in December of last year. They are the best professionals in the entire world.

Chinese, South Koreans, Japanese, and Europeans all have the right to disagree. Whatever the motives, TSMC has moved Arizona’s industrial production from 2024 to 2025.

In the meantime, Chinese and foreign manufacturers of technology are growing their existence in Kumamoto in response to increased demand brought on by the TSMC joint venture. On Japan’s” Silicon Island” and” Kyushu ,” which is already a significant center of semiconductor production, TSMC is causing an unprecedented wave of growth.

The largest manufacturer of transistor equipment in Japan, Tokyo Electron, is constructing a new facility in Kumamoto for the creation and development of material coaters and developers. It will double the length of its activities in Kyushu and be finished by the end of 2024. The largest coater / developer market worldwide is dominated by Tokyo Electron.

After Applied Materials of the US, Ebara is the second-largest manufacturer of chemical mechanical planarization ( CMP ) equipment. It has started building a new factory in Kumamoto that will roughly double its CMP production capacity. It should also go online by the end of 2024 and be finished with new R & amp, D facilities in Fujisawa, close to Tokyo. & nbsp,

Disco, the nation’s top manufacturer of silicon chip dicing, milling, and polishing machinery, as well as relevant consumables, has formally opened its Mid-Process Research Center in Kumamoto. Consumers and other visitors were able to visit the facility in July after it had been operating under Covid-related health restrictions since December 2021.

The goal of this facility is to make the process of fabricating numerous semiconductor devices on silicon or other types of wafers more efficient than the” back-end” process, which Disco specializes in, of dicing( wafer singulation through cutting, separating individual die for packaging in chips ). By preventing the silicon from deteriorating, yields are kept high. & nbsp,

The mid-process R & amp, D center also enables the verification of unmanned operations by integrating a number of processes with an automated transfer robot. These procedures include pick-up, evaluation, and die assessment, as well as thinning the chip with a grinders and singulation using knife dicing and laser saws.

In June, Screen Holdings, the nation’s top manufacturer of semiconductor cleaning supplies, opened a new training facility at its Kumamoto location. & nbsp,

In Kumamoto, ASML intends to increase its support and service ability. ASML image

The top US manufacturer of polishing equipment and semiconductor lithography systems, ASML, both intend to increase their support and service offerings in Kumamoto. There are also offices for Applied Materials, the largest manufacturer of semiconductor production equipment in the world, and KLA, a market leader in transistor assessment equipment. & nbsp,

Two significant Japanese businesses that are both shareholders and the biggest potential customers of the enterprise are Sony and Denso( which is affiliated with Toyota ), with which TSMC is collaborating in Kumamoto. In a comparable business and social environment, without antagonistic management-union relations, it will be expanding its IC factory services for both of them not far from Taiwan. TSMC is the sole owner of its innovative business in Arizona. & nbsp,

Strong local partners who are both investors and customers will also be working with TSMC in Dresden, Germany, where the company intends to launch a joint venture with Bosch, Infineon, and NXP called & nbsp, European Semiconductor Manufacturing Company. It appears likely that the Germany-based job, similar to the one in Japan, will proceed more efficiently than the Arizona project that was delayed.

Follow this author on Twitter at @ ScottFo83517667.

Continue Reading

Can TMJ seize the moment and be the dynamic leader Johor’s digital ambitions need?

Launch of Digital Johor Masterplan 2030 and leadership of TMJ as incoming Sultan
No-nonsense, results oriented leadership style could make the difference

There is a digital reboot going on in Johor, the southern Malaysian state that is a short causeway ride away from Singapore, which many observers on both sides of the causeway,…Continue Reading

INSEAD launches world’s largest XR immersive learning library for management education and research

Second business class to introduce a complete collection of VR educational resourcesUtilized by 40 profs, 13 k students, and accessible globally through the INSEAD XR PortalThe INSEAD XR Portal was just unveiled by the company. The cutting-edge platform provides a comprehensive solution to bring these immersive learning…Continue Reading

Booth, CelcomDigi unveil Malaysia’s first global prepaid card with paylater in collaboration with MasterCard

First card to issue Mastercard Travel Rewards in M’sia & amp, SEAUsers can use a pre-approved credit line and obtain money from their Boost wallet.The Beyond Card, a two-in-one foreign passport in Malaysia powered by the Mastercard system, has been unveiled by Boost and CelcomDigi. & nbsp,This revolutionary card, according to…Continue Reading

Malaysia maintains 36th spot out of 132 countries in Global Innovation Index 2023

The second-most impressive nation out of 36 upper-middle-income nations, after ChinaAdvancements in the categories of” Institutions” and” Human Captial and Research” ( nbsp ),In this year’s Global Innovation Index ( GII ) 2023, Malaysia has maintained its 36th place among 132 nations. According to a report released by the World Intellectual…Continue Reading

Ericsson showcases the possibilities with 5G at ‘Imagine Live Malaysia 2023’

demonstrated energy-efficient radio solutions, modern twins, and network automationThe country needs to encourage teamwork and develop an habitat that can use 5G.Last week, Ericsson launched its international Imagine Live event in Malaysia, showcasing some of its technological advancements and use cases for 5G. Fahmi Fadzil, Minister of Communications and Digital, presided…Continue Reading

Gobi Partners invests undisclosed amount into agritech BoomGrow

Pre-Series A made via Khazanah-backed Gobi Dana Impak Ventures fund
Uses repurposed shipping containers located in situ, growing vegetables

Asia-focused venture capital firm, Gobi Partners is doubling down on its commitment to Environment, Social and Governance (ESG)-friendly investments through its latest funding, for an undisclosed amount, into Malaysian AgriTech startup, BoomGrow’s Pre-Series A…Continue Reading

MDEC partners Acxyn to help increase adoption of creative technologies in Malaysia

Acxyn, an IP tokenization platform, received a US$160k grant from MDEC
Position Malaysia as global gaming hub, attracting foreign IPs & studios

Malaysia Digital Economy Corporation (MDEC) and Acxyn, a pioneering web3 company, have announced a collaboration in an effort to spearhead the growth and widespread adoption of creative technologies in Malaysia. This…Continue Reading

Taiwan builds first submarine, with Western support

Taiwan, a self-governing island in Asia, is not only famous for its dominance in the global semiconductor sector but can now also call itself a submarine-maker after it unveiled its first underwater vessel on Thursday. 

The submarine, named “Hai Kun” in Mandarin and “Narwhal” in English, was built by a team of 1,003 engineers, technicians and specialists at the Kaohsiung dockyard of CSBC Corporation. It will be delivered to Taiwan’s navy by the end of 2024 and begin service in 2025.

Hai Kun has a displacement weight of about 2,500 to 3,000 tons. It can carry 18 MK-48 torpedoes, which are worth US$10 million each for a total of $180 million and which are to be delivered from the US to Taiwan in 2025. With a lead-acid battery, it can stay quietly on a battlefield for up to four days.

If the Legislative Yuan approves more budget, Taiwan can build another submarine for use starting in 2027, according to the island’s National Ministry of Defense. Future models will be able to carry submarine-launched ballistic missiles (SLBMs). 

By comparison, South Korea launched its first domestically-made KSS III submarine, called “Dosan Ahn Chang-ho,” in September 2018. The 3,000-ton submarine went into service in 2021. About 76% of the vessel’s parts were locally produced. It can carry SLBMs. 

Taiwan’s plan to build its first home-made submarine was implemented after Taiwanese President Tsai Ing-wen became the island’s leader in 2016. 

“History will remember this day,” Tsai said in a speech during the submarine’s launch ceremony on Thursday. “In the past, many people thought building an indigenous submarine would be an impossible task. But we have made it.”

Admiral Huang Shu-kuang, a senior adviser to the National Security Council, which led the program, praised Tsai for her vision and planning in the making of Hai Kun. He said submarine-building is now a huge part of the defense industry in Taiwan, which now possesses its own submarine blueprint and 85 self-developed components.

The submarine also has a political meaning for Taiwanese politics as it was launched ahead of the island’s presidential election coming up in January 2024. As of now, Lai Ching-te, a presidential election candidate representing the Democratic Progressive Party (DPP), is leading in polls, as opposition parties have failed to form an alliance so far. 

Taiwanese President Tsai Ing-wen looks at a model of Hai Kun on September 28, 2023. Photo: president.gov.tw

This combination of course makes Beijing unhappy. “The DPP authorities have clung stubbornly to the separatist position for ‘Taiwan independence,’ squandered hard-earned money of people in Taiwan and sought to create antagonism and confrontation across the Taiwan Strait, which will only undermine cross-Strait peace and stability,” Mao Ning, a spokesperson of the Chinese Ministry of Foreign Affairs, said Thursday.

She added that Taiwan is an inalienable part of China’s territory while the reunification of the two sides of the Taiwan Strait must and will be realized. 

In the long run, Taiwan wants to make eight submarines. It could use a fleet of six indigenous submarines, following the rule of threes – one on patrol, one under maintenance, and one doing pre-deployment training.

These submarines could be used to ensure that Taiwan’s Hualien and Kaohsiung remain open against a potential Chinese blockade intended to prevent US reinforcements and resupply. 

Self-sufficiency

Reuters reported in November 2021 that at least seven countries were helping Taiwan to build its first indigenous defense submarine. It said the United States and United Kingdom sold submarine systems and parts to Taiwan while the island also hired engineers, technicians and former naval officers from Australia, South Korea, India, Spain and Canada.

In late 2016, CSBC Corp was granted a budget of NT$49.36 billion (US$1.54 billion) to build the indigenous sub. It reportedly had fine-tuned the blueprint of the submarine more than 700 times over the past seven years.

Cheng Wen-Lon, chairman of CSBC Corp, said about 60% of the budget was spent on purchasing foreign military equipment and materials. 

“During the construction of the submarine, the most difficult task was to source foreign equipment and parts and apply for export licenses,” Cheng said. “Our team tried to source as many local components as possible. Hai Kun has achieved 40% self-sufficiency.”

He said submarine equipment is classified into three types – red, yellow and green zones. He said red zone items, including combat systems, digital sonar systems, diesel engines, telescopes, torpedo launchers and missile systems, cannot be sourced in Taiwan; yellow zone ones are difficult to obtain but have the potential to be produced locally; and green zone ones can be made on the island.

He said Taiwan has so far been able to self supply 85 green zone items, including a flush toilet, an air-tight door, a seawater desalination system, a hydraulic system and an air-conditioning system, all of which must meet the submarine’s low-noise standard.

Besides, he said, the company sourced more than 107 red zone items, including Lockheed Martin’s combat system and Raytheon’s sonar system. 

In the first nine months of 2022, the United Kingdom approved the exports of submarine parts worth£167 million (US$202 million) to Taiwan, Reuters reported in March this year. The amount is more than the previous six years combined. 

Political headwinds

The team that built Hai Kun includes 861 workers from CSBC Corp, 30 researchers from the National Chung-Shan Institute of Science and Technology, 40 officers from the navy’s 256th Submarine Squadron, 34 researchers from the navy’s development center and seven officers from the defense ministry. 

The personnel in the program were all subject to monitoring by a military security division to ensure no secrets were leaked, Huang said. But still, information leakage had occurred during the procurement process, he said. 

He said a Taiwanese arms seller that lost a bid to a foreign firm disclosed the procurement information to Chinese diplomats, who then put diplomatic pressure on the country where the winning bidder is situated. He said one foreign supplier had pulled out of the program due to this incident.

Last September, Wang Chih-pang, a former Taiwanese naval captain, predicted that the making of the Taiwanese submarine would fail as the manufacturer could not obtain three red zone items: sound-absorbing coating and ceramics, an air-independent propulsion (AIP) system and electronic warfare countermeasure equipment. 

Citing Wang’s comments, mainland Chinese media said Taiwan’s submarine would not be able to extend its endurance under the water for weeks without an AIP system. 

The Taiwanese navy retorted that Wang’s criticism was groundless and the progress of building Taiwan’s first self-developed submarine was smooth. It also said Wang lacked the specialized knowledge to justify the comments.

Euan Graham, a China export at the Australian Strategic Policy Institute, told Breaking Defense that it was impressive that Taiwan successfully made its own submarine against very strong political headwinds that apparently affected the supply of equipment. 

Read: Taiwan’s homemade subs may or may not deter China

Follow Jeff Pao on Twitter at @jeffpao3

Continue Reading