DENSO Holds Minority Stake in “pipeline” Japanese Semiconductor Manufacturing Company

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Babafemi Adebajo
Babafemi Adebajohttps://www.definitionsbyadebajo.com

Femi is a freelance content writer with adequate experience creating content for online and offline media across different niches including technology. When he is not writing, you can find him trying out new technology or reading.

A press release dated the 15th of February, 2022, says DENSO will hold a minority stake in the yet-to-be-launched Japan Advanced Semiconductor Manufacturing Inc (“JASM”). DENSO Corporation reportedly invests US$350 million into JASM, taking up to a 10% equity stake in the organization.

Other notable shareholders include Sony Semiconductor Solutions Corporation (“SSS”) and Taiwan Semiconductor Manufacturing Company Limited (“TSMC”). Based in Kumamoto Prefecture, Japan, JASM is a manufacturing subsidiary owned majorly by TSMC.

JASM’s Fab construction begins

The construction of JASM’s fab will reportedly kick off this year and close by the end of 2024. Moreover, TSMC will enhance the manufacturing fab’s capacities with a 12/16 nanometer FinFET process technology, in addition to the earlier announced 22/28 nanometer process technology.

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The ongoing enhancement in the semiconductor manufacturing outlet will increase its monthly production capacity to 55,000 12-inch wafers. The new developments also mean that the total capital expenditure for the Kumamoto fab now reaches an estimated US$8.6 billion.

According to the report, the fab construction also enjoys virile support from the Japanese Government. Meanwhile, the fab will expectedly provide over 1650 high-profile professional tech jobs upon completion.

What the partners are saying

Speaking on DENSO’s new participation in JASM, Dr. CC Wei, CEO of TSMC, acknowledges DENSO as a “top-notch” Japanese semiconductor talent. According to the TSMC boss, the new deal will leverage DENSO’s strengths in producing fresh innovations in the global semiconductor sector. Founded in 1987, the Taiwanese TSMC has led the semiconductor foundry globally and operates globally across Europe, North America, and Asia.

Terushi Shimizu, the President and CEO of Sony Semiconductor Solutions Corporation, assert that the global demand for semiconductors is expected to increase. For Shimizu, it’s all bright hopes and expectations from the new JASM partnership with DENSO. SSS is a subsidiary of Sony Group Corporation, a world leader in the production of image sensors.

DENSO’s President and CEO reportedly hope that the launch of JASM will help bring stability of semiconductor products supply into the entire industry. DENSO is a global mobility supplier that develops the latest technology and components for virtually every vehicle on the roads today.

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