Taiwanese chipmaker picks $5.4 billion plant in Japan

Some developed countries are considering the chip manufacturing industry as a national security strategy.

On October 31, 2023, representatives of Taiwanese chipmaker Powerchip Semiconductor Manufacturing Corp (PSMC) and Japanese financial company SBI Holdings said they had selected Miyagi Prefecture in northern Japan as the site to build a $5.4 billion chip foundry.

Although the project has yet to receive Japanese government subsidies, talks are progressing and have resulted in the latest commitment from Taiwanese chipmakers to build large-scale manufacturing facilities in Japan.

In September 2023, a representative of Taiwan's largest chipmaker, Taiwan Semiconductor Manufacturing (TSMC), also gave very optimistic assessments about the possibility of Japan serving as an important production base.

TSMC is building an $8.6 billion chip factory on the island of Kyushu, which is expected to be operational by 2024. The company also plans to build a second factory in Japan, with the goal of creating ultra-modern, never-before-seen chip designs.

PSMC said it aims to produce microcontrollers and power chips, needed for energy management in electric vehicles, along with chips for artificial intelligence.

PSMC founder and chairman Frank Huang said that the cost structure (in Taiwan and Japan) is not too different, which is a big advantage for building factories.

In the first phase worth $2.8 billion, scheduled for completion in 2027, the foundry will produce chips using 40 nanometer and 55 nanometer technology, with a targeted monthly output of 10,000 wafers.

The second phase, scheduled for completion in 2029, will introduce 28-nanometer chip technology, with a monthly production target of 40,000 wafers.

PSMC and SBI Holdings announced plans to build the plant in July 2023 and received cooperation offers from more than 30 localities in Japan, stretching from Hokkaido island to Kyushu.

Japan has recently been ambitious to revive its chip industry after a long period of decline. The country is seeing a wave of foreign investment in chip manufacturing projects after introducing generous subsidy policies.

Previously, the chip manufacturing joint venture between Rapidus and TSMC benefited greatly from this policy.

(according to CNBC)

Source: https://vietnamnet.vn/nha-san-xuat-chip-dai-loan-chon-noi-dat-nha-may-tri-gia-5-4-ty-usd-o-nhat-ban-2209439.html