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The $8.6-billion facility in the southern Kumamoto region showcases TSMC's efforts to make some of its strategically crucial chips elsewhere than hotspot Taiwan, as well as Japan's push to revive its once-dominant semiconductor sector.
Japan turning to TSMC for help on an industry it once dominated reflects the Taiwan chipmaker's dominant position in the foundry business and Tokyo's heightened concern over China's growing prowess in a wide swathe of technology.
The influx comes amid shifting alliances and priorities in the global chip industry as the United States pushes to limit China's progress in cutting-edge semiconductors and strengthen partnerships between its allies. Fabless chipmaker Alchip Technologies, which specialises in customised chips known as application-specific integrated chips (ASICs), is illustrative of the China decoupling trend.
Aside from Nvidia, shares of rival chipmakers AMD, Intel and Qualcomm were also up in early trading.
Surrounded by fields of carrots and cabbages, workers are adding the latest touches ahead of the opening of a plant of Taiwanese chip giant TSMC, planned...