TSMC announces chip plant in Japan, flags 'tight' capacity throughout 2022

FILE PHOTO: The logo of Taiwan Semiconductor Manufacturing Co (TSMC) is pictured at its headquarters in Hsinchu, Taiwan, January 19, 2021. REUTERS/Ann Wang/File Photo GLOBAL BUSINESS WEEK AHEAD

TAIPEI (Reuters) -Taiwan chip giant TSMC announced on Thursday plans to build a new factory in Japan to meet long-term appetite for chips and said, near-term, tight supplies will likely continue into 2022 amid booming demand during the COVID-19 pandemic.

TSMC, the world's largest contract chipmaker and a key supplier to Apple Inc, said it would set up a chip plant in Japan that will use older chipmaking technology, a segment currently under a severe supply shortage due to robust demand from automakers and tech companies. But production from the plant is only likely to begin by late 2024.