Taiwan’s DSMC and Japan’s Sony Group are considering setting up a chip factory in Japan, with the government ready to pay some of the approximately JPY 800 billion ($ 7.15 billion or Rs 53,600 crore) investment, Nikkei reported on Friday.
The plant in Kumamoto, southern Japan, is expected to build semiconductors for automobiles, camera image sensors and other products affected by the global chip shortage, and will begin operations by 2024, the report said.
Japan’s leading auto parts maker Tenzo also wants to take part in activities such as setting up equipment on site, the report said. Toyota motor team member looking for standard chips used in its auto parts.
Both Sony and DSMC declined to comment, while Tenzo was not immediately available for comment. In July, DSMC, the world’s largest contract chip maker and Apple’s largest supplier, said it was reviewing plans to set up production in Japan.
TSMC is concerned about the concentration of chipmaking capability in Taiwan, which produces the most advanced chips in the world. China has not ruled out using force to bring the democratic island under its control.
Japanese officials are concerned about the stability of the supply chain of its industries, forcing automakers to cut production due to a global chip shortage.
© Thomson Reuters 2021