TSMC CEO C.C. Wei has confirmed that the company is expanding production capacity at facilities in both Japan and Germany, a move designed to keep pace with surging demand for image sensors, automotive chips, and industrial semiconductors.
What’s being built, and where
In Japan, TSMC is operating through a joint venture called JASM, based in Kumamoto. The facility began volume production in late 2024, with total investment at the site exceeding $20 billion. Plans for a second fab at the same location could bring upgraded capabilities, potentially reaching 3nm technology with strong production yields.
In Germany, the project is running through a separate joint venture called ESMC, located in Dresden. That facility is targeting a capacity of around 40,000 wafers per month, with operations expected to come online somewhere between 2027 and 2029.
The Dresden project carries a total price tag of roughly €10 billion. TSMC’s own stake in the venture amounts to €3.5 billion, with the German government providing approximately €5 billion in subsidies to help get the facility off the ground.
