Microcontroller manufacturer Microchip Technology has partnered with TSMC in Japan.

The two companies are partnering for the production of 40nm chips at the Taiwanese chip manufacturer’s majority-owned manufacturing subsidiary in Kumamoto Prefecture, Japan.

TSMC's Japan Advanced Semiconductor Manufacturing, also known as JASM, will provide wafer capacity for Microchip, allowing the company to increase its supply chain resiliency.

Microchip Technology
Microchip has partnered with TSMC – Microchip Technology

In addition to the partnership with TSMC, Microchip said it is also undertaking a number of other supply chain resiliency initiatives, including investing in additional technology to boost internal manufacturing capabilities and capacity and improve the geographical diversity of its wafer fab, foundry, assembly, test, and training partners.

“Microchip’s reputation for providing responsible and reliable supply management is enhanced with this new TSMC manufacturing path,” said Michael Finley, Microchip senior vice president of worldwide manufacturing and technology. “Customers can have confidence when designing our products into their applications and platforms, with the support of resilient and robust manufacturing capabilities.”

In January 2024, Microchip was awarded $162 million in funding from the US CHIPS and Science Act for the expansion and modernization of the company’s Colorado and Oregon plants. Ten days after the funding announcement, Microchip said it would furlough employees at its Oregon site for two weeks in March due to an unexpected drop in sales.