TSMC prizes Japan's chips skills after US stumbles -sources

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TSMC prizes Japan's chips skills after US stumbles -sources
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TOKYO/SINGAPORE/TAIPEI (Reuters) - Taiwan's TSMC, which is making an unprecedented push into chip manufacturing overseas, is taking an increasingly optimistic view of Japan as a production base, two industry sources said, as problems persist at its new factory in Arizona.

TSMC, the world's largest contract chipmaker, is frustrated in Arizona, the sources said, where it has struggled to recruit workers for the gruelling chipmaking trade and faced pushback from unions on efforts to bring in workers from Taiwan.

Successful expansion by TSMC in Japan could give a boost to efforts by the country to regain its lost status as a chip manufacturing powerhouse and support its automotive and electronics industries amid growing regional competition. Fabs in the U.S., Japan and Germany, where it is also expanding, are"inherently incomparable" due to differences in location, setup and scope, TSMC said.The U.S., Japan and Germany have offered TSMC billions of dollars in subsidies for it to localise production in efforts to diversify the supply of chips, which are essential to the defence, automotive and electronics industries.

Japan's advantages for the chipmaker include its network of chip equipment and materials suppliers, similarities in work culture and proximity to Taiwan, she added. Taiwanese workers arriving to help set up the fab are welcome, and the chipmaker will pay higher wages to secure local employees as it competes with rivals such as foundry venture Rapidus, the sources said.

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