In 2023, China will overtake Japan as the world’s largest exporter of automobiles&Toyota to invest $1.3 billion in new electric SUV plant in Kentucky&TSMC, the world’s largest chipmaker, to build second plant in Japan

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In 2023, China will overtake Japan as the world’s largest exporter of automobiles.

Feb 01, 2024

According to data from the Japan Automobile Manufacturers Association, China surpassed Japan as the world’s largest exporter of vehicles last year. This is mainly due to large investments in electric vehicles. According to JAMA figures, China exported 4.91 million vehicles in 2023, compared to Japan’s 4.42 million. Chinese customs reported a further 5.22 million vehicles exported, representing a 57% jump over the previous year. China was already exporting more vehicles per month than Japan, and this data confirms that it is the world’s largest exporter.

Unlike their Chinese competitors, Japanese automakers are also building large numbers of vehicles in other countries: in 2022, 7.84 million vehicles were produced in Japan, while almost 17 million were produced overseas. Japanese manufacturers focused on hybrids instead of electric vehicles, with electric vehicles accounting for only 1.7% of all vehicles sold in Japan.

Among Japanese automakers, Toyota aims to sell 1.5 million electric vehicles annually by 2026 and 3.5 million by 2030. The company also hopes to be able to mass produce solid-state batteries. This technology could allow batteries to recharge faster and give electric vehicles a greater range than normal.

China’s BYD, backed by the Beijing government, has grown rapidly and this month took the top spot in fully electric vehicle sales, ahead of Tesla. China’s success in electric vehicles, however, has put Chinese companies in a bind, with regulators in Western markets accusing them of price dumping and other anti-competitive practices. European Commission President Ursula von der Leyen announced an investigation into Chinese state subsidies for electric vehicles in September. Depending on the outcome of this investigation, the European Union may impose tariffs on vehicles it identifies as being sold at low prices.

Christopher Richter, an automotive analyst with CLSA, said, “It is reminiscent of the 1980s, when Japan started exporting large numbers of cars.” He noted in October, “Japan solved this problem by building many factories overseas. They built more than four times as many factories overseas as they exported,” he said.

Source: China overtook Japan as world’s top vehicle exporter in 2023

Toyota to Invest $1.3 Billion in New Electric SUV Plant in Kentucky

Feb 7, 2024

Toyota has announced a $1.3 billion investment in its Kentucky plant for electrification efforts, including the assembly of a new three-row battery-electric SUV. The project will bring the plant’s total investment to about $10 billion. The move comes at a time when legacy automakers like Ford (F.N.) are backing away from their electric vehicle (EV) ambitions and focusing on more profitable hybrid and gasoline engine models.

The investment will support the Japanese automaker’s previously announced battery-electric vehicle assembly in Kentucky. The company will also supply batteries from Toyota Battery Manufacturing North Carolina and add a battery pack assembly line to the facility. Kentucky Governor Andy Beshear said, “We appreciate Toyota’s continued investment in Kentucky. The Kentucky plant is an important hub for the Japanese automaker, employing about 9,400 workers and assembling as many as 550,000 vehicles a year, including the popular Camry sedan.

Toyota also revised its full-year operating income forecast upward by nearly 9% earlier in the day after third-quarter results beat analysts’ estimates due to the weak yen and strong sales of high-margin cars and hybrids.

Source: Toyota to invest $1.3 bln in Kentucky facility for new electric SUV

TSMC, the world’s largest chipmaker, to build a second plant in Japan.

Feb 07, 2024

Chip giant Taiwan Semiconductor Manufacturing Corporation (TSMC) is increasing its production in Japan as it continues to expand its global presence.TSMC will build a second semiconductor manufacturing plant (fab) in Japan “to meet growing customer demand,” the company said in a statement Tuesday.

Construction of Japan Advanced Semiconductor Manufacturing (JASM), TSMC’s majority-owned subsidiary, is scheduled to begin by the end of 2024, and the facility is expected to be operational by the end of 2027. Combined with JASM’s first plant, which is scheduled to begin operations this year, the total investment in Japan will exceed $20 billion “with strong support from the Japanese government,” the statement said. Toyota Motor (TM) and Sony (SONY) are also investing in the venture.

Together, these plants will create about 3,400 skilled jobs, according to TSMC. The increased production in Japan comes at a time when the chipmaker is facing delays in its Arizona project. The company has announced that it will build a second semiconductor plant in the southwestern U.S. state of Arizona in 2022, adding to its existing plant plans and raising its investment in Arizona from $12 billion to $40 billion.

The investment was previously hailed by U.S. President Joe Biden as a sign of the “resurgence” of U.S. manufacturing. However, TSMC announced earlier this year that the facility would begin operations in 2027 or 2028, instead of the expected 2026.

TSMC, headquartered in Hsinchu, Taiwan, produces an estimated 90% of the world’s ultra-advanced semiconductors and supplies global high-tech giants such as Apple (AAPL) and NVIDIA (NVDA). The company has typically kept its state-of-the-art manufacturing operations in Taiwan, but commercial pressures and encouragement from a number of governments have led it to expand overseas in recent years. Last year, the company announced that it would build its first European plant in Dresden, Germany.

Source: World’s largest chipmaker TSMC to build a second factory in Japan