Taiwan’s Powerchip Semiconductor Manufacturing Corporation (PSMC) and Japanese financial conglomerate SBI Holdings have announced plans to construct an 800 billion yen ($5.3 billion) chip manufacturing plant in northern Japan. The initial phase of the project, located in the Miyagi Prefecture, will require a 420 billion yen investment. With both local and foreign investors, bank loans, and government subsidies involved, the move highlights Japan’s efforts to bolster its domestic semiconductor industry amidst export restrictions on key chips and tools to China by the US.
The plant will focus on producing semiconductors in the 28-nanometer, 40-nanometer, and 55-nanometer categories, primarily for automotive applications. Japan’s subsidies to attract manufacturing facilities, as well as other recent investments by companies like Micron and a government-backed fund, demonstrate the country’s commitment to strengthening its semiconductor supply chain.