Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan and SBI Holdings of Japan have identified a site in northern Japan for an 800-billion-yen ($5.3 billion) chip manufacturing factory, the two companies announced on Tuesday.
Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan and SBI Holdings of Japan have identified a site in northern Japan for an 800-billion-yen ($5.3 billion) chip manufacturing factory, the two companies announced Tuesday.
The first phase of the project, located in Miyagi Prefecture, north of Tokyo, would cost 420 billion yen. PSMC and SBI Holdings will pay half of the foundry’s cost, with the remainder coming from foreign and domestic investors, bank loans, and government subsidies, according to the firms.
Japan has been working to expand its domestic semiconductor industry and chip manufacturing, and the enormous plant demonstrates the government’s efforts in this field.
This comes while the United States continues to tighten export restrictions on crucial semiconductors and tools to China while attempting to encourage American production of these components, which are used in everything from smartphones to automobiles.
As the requirement for semiconductors grows and the technology is viewed as increasingly strategic, other countries, particularly Japan, are attempting to improve their capabilities across the board.
The PSMC and SBI factories will produce semiconductors with 28 nanometer, 40 nanometer, and 55 nanometer dimensions. They are hardly the cutting-edge semiconductors found in smartphones, but they are critical for automotive applications. Toyota and Honda are two of the world’s largest automakers, with headquarters in Japan.
The companies failed to offer a schedule for construction or when the factory will be operational, but stated that those specifics will be provided as they become more “concrete.”
Japan has been providing incentives for corporations to establish manufacturing plants in the country.
Micron, a memory chipmaker based in the United States, stated in May that it would invest up to 500 billion yen in Japan over the next few years, including in manufacturing.
Meanwhile, Japan has been attempting to reinvest in sectors of the semiconductor supply chain where it has previously excelled. In June, a Japanese government-backed fund proposed a 903.9 billion yen acquisition of semiconductor materials firm JSR.
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