TSMC and Sony are considering jointly building a chip factory in Japan, with the government ready to pay for some of the investment of about 800 billion yen ($7.15 billion).
Amid a global chip shortage Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, and Sony Group are considering joint construction of a semiconductor factory in western Japan. Apple chip partner TSMC, as part of a $7 billion investment that could start production of chips by 2024.
TSMC and Sony may not be the only companies partnering in the project. Toyota Motor Group member Denso is allegedly to take part, possibly to gain a stable chip supply for auto parts.
The Japanese government plans to subsidize about half of the project’s total cost. The funding will be included in the supplementary budget for fiscal year 2021, which will be finalized after the lower-house election on Oct. 31. Mindful of economic security, the government decided it is essential to build domestic production capacity for advanced semiconductors.
In exchange for subsidies, the government will seek a commitment that chip supplies to the Japanese market will take priority. The plant in Kumamoto, southern Japan, is to produce semiconductors for automobiles, camera image sensors and other products.
As tensions between China and the U.S. Mount and semiconductors are increasingly important to economic security as they form the foundation of various industries. Tokyo in June initiated measures to attract foreign companies amid China’s escalating military pressure on Taiwan, a key supplier of semiconductors to Japan.
At the request of the U.S. government in 2020, TSMC decided to build a $12 billion factory in Arizona.
image credit (Wikimedia Common)
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