Taiwan’s Powerchip Evaluating 5 Sites in Japan For $5.4 bln Factory – Sources

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Taiwan's Powerchip Evaluating 5 Sites in Japan For $5.4 bln Factory – Sources
Taiwan's Powerchip Evaluating 5 Sites in Japan For $5.4 bln Factory – Sources

In July, Powerchip established a joint venture with Japanese financial institution SBI Holdings (8473.T) with the goal of obtaining government subsidies to develop a plant in Japan.

Taiwan chipmaker Powerchip Semiconductor Manufacturing Corp. (6770.TW) is looking into five locations in Japan, including Mie prefecture, for a proposed $5.4 billion facility as subsidy talks proceed, according to media reports.

According to two sources who declined to be identified because the information is not public, those negotiations are moving forward.

According to one source, the entire cost of the factory will be around 800 billion yen ($5.35 billion), with Powerchip seeking subsidies to pay a portion of the cost of the first phase.

According to the source, Powerchip is considering five different locations for manufacturing. According to two sources, one candidate is Mie prefecture in central Japan, which is close to the industrial hub of Nagoya and fabs operated by Taiwan’s UMC (2303.TW) and Japan’s Kioxia.

According to a representative, conversations with the Japanese government are ongoing, and a formal application for subsidies for the 420 billion yen first phase is planned.

Japan is attempting to revitalize its chip sector, which retains a competitive advantage in materials and equipment but has lost its manufacturing primacy, by providing subsidies to both domestic and international chipmakers.

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