Microchip Technology to partner with TSMC on 40nm production in Japan

Taipei, April 9 (CNA) U.S.-based Microchip Technology on Monday said it has reached a deal with Taiwan Semiconductor Manufacturing Co. (TSMC) to run specialized 40-nanometer manufacturing processes at TSMC's subsidiary in Kumamoto Prefecture, Japan.

In a press release, Microchip Tech, a manufacturer of microcontroller, mixed-signal, analog and Flash-IP integrated circuits, said the move would boost its efforts to build resiliency in its supply chain.

The wafer capacity supply from the partnership "further strengthens Microchip's ability to serve a broad base of global customers in a variety of markets including automotive, industrial and networking applications," the company said.

Rosa Castanares, senior vice president of business management at TSMC North America, said the initiative was "further proof of TSMC's commitment to supporting our customers' long-term growth and innovation."

TSMC opened its first Japanese plant in Kumamoto Prefecture on Feb. 24 of this year, with mass production scheduled to begin in the fourth quarter.

The company confirmed just days ago that it had chosen the same Kumamoto town, Kikuyo, to host its second fab in the country.

Once completed, the two fabs are expected to roll out 100,000 12-inch wafers a month at maximum capacity, using the mature 40 nm, 28nm, 22nm, 16nm, 12nm processes as well as the advanced 7nm and 6nm technologies, TSMC said.