However, TSMC is making strategic moves to add heterogeneous multi-die packaging to its foundry service offering. Typically packaging and test of ICs has been conducted by a separate set of service providers, also typically based in Taiwan or elsewhere in southeast Asia. These OSAT companies then ship chips on to equipment makers. A clear marker of TSMC's intentions in packaging was set down In 2020 when TSMC announced plans to spend $10 billion on an IC assembly, packing and test facility in Miaoli, northern Taiwan (see Chiplet-savvy TSMC to build $10 billion assembly and test plant).
The joint-venture with Japan's government would be TSMC's way of sharing its expertise in 'chiplet' heterogeneous multi-die component manufacturing with Japanese semiconductor companies.
TSMC and Japan are expected to sign a memorandum of cooperation to set up the advanced packaging and testing plant soon.
Related links and articles: