Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan and SBI Holdings of Japan announced on Tuesday that they have identified a location in northern Japan to build a chip factory with a cost of 800 billion yen (approx. 5.3 billion USD). Japan is trying to augment its domestic chip making and PSMC's and SBI's plant falls in line with these efforts. The plant will produce semiconductors with 28 nanometer, 40 nanometer, and 55 nanometer capacities.
Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) and Japanese financial conglomerate SBI Holdings announced Tuesday that they have identified a location in northern Japan for an 800 billion yen ($5.3 billion) chip production plant. The first stage of this project, located in Miyagi Prefecture just outside Tokyo, is estimated to cost 420 billion yen, and will be funded evenly by the two firms, as well as contributions from foreign and domestic investors, bank loans, and government subsidies. Japan's government is emphasizing the importance of rejuvenating their semiconductor industry and the construction of this substantial plant demonstrates their commitment to this goal.
As the U.S. continues to place restrictions on the export of key semiconductors and tools to China in an effort to bolster domestic manufacturing of these components used in a range of products, including smartphones and cars, other countries are also looking to bolster their semiconductor capabilities. The PSMC and SBI joint venture will produce semiconductors in the 28 nanometer, 40 nanometer and 55 nanometer categories, which are necessary for automotive applications, though not as cutting-edge as those used in smartphones. Japan is home to many large carmakers, including Toyota and Honda. Neither company has released details on the construction timeline or operational date, though they have said they will provide an update when those details are "concrete". Japan has been offering subsidies for companies to set up production facilities in the country, with U.S. memory chipmaker Micron announcing in May that it would invest up to 500 billion yen over the following few years. Further, Japan has aimed to double down on areas of the semiconductor supply chain that it has traditionally been strong in, with a June fund backed by the Japanese government proposing to acquire semiconductor materials giant JSR for 903.9 billion yen.
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