• Contract chipmaker Taiwan Semiconductor Manufacturing Co Ltd (NYSE: TSM) gears up for chip plant debut in Japan to counter the global semiconductor chip crisis, Nikkei Asia reports.

  • TSMC CEO C.C. Wei acknowledged support from its customers and the Japanese government to proceed with the investment, subject to its board approval.

  • The plant will focus on 22-nm and 28-nm specialty technology that applies from image sensors to microcontrollers.

  • The construction of the factory will start in 2022, with mass production in 2024.

  • TSMC admitted that the project is beyond the previously announced three-year, $100 billion investment plans. TSMC is also open to joint ventures with other companies or its customers regarding the project.

  • Wei also admitted that the chip industry is experiencing a "short-term imbalance due to disruption in the supply chain, brought on by COVID-19."

  • Wei talked about possible "inventory correction."

  • "We are seeing demand go soft in the smartphone and PC markets … but TSMC's capacity will remain tight in 2021 and throughout 2022," Wei said.

  • TSMC is already building its most advanced chip facility in Arizona and pondering a plant in Germany. It is also expanding capacity in China's Nanjing.

  • Price Action: TSM shares traded higher by 3.84% at $114.2 in the premarket session on the last check Thursday.

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