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Sources: Sony will work with TSMC to build a $7 billion semiconductor plant in Japan

10/09/2021

chip manufacturing


  The Nikkei News quoted a number of unnamed people familiar with the matter, TSMC and Sony plan to invest in Japan's western Kumamoto Prefecture to build a 800 billion yen (about $ 7.14 billion) worth of semiconductor factories.

  The sources revealed that the plant will be located on land owned by Sony and adjacent to Sony's image sensor factory. Sony may hold a minority stake in a new company responsible for managing the plant, which is scheduled to come into operation in 2023 or 2024 and will produce semiconductor chips for camera image sensors, automobiles and other products.

  TSMC has not yet commented on this. TSMC said in July this year that the company was already "actively" reviewing the project. Not long ago, TSMC also expressed its openness to working with Sony. If the plan is finally realized, this will be TSMC's first semiconductor plant in Japan.

  Since the New Crown pandemic, the global technology industry has been in the grip of semiconductor shortages and supply chain disruptions. Japan, which is recognized as the world's leading technology nation, has also suffered significant losses. The Japanese government's subsidy will reportedly cover half of the cost of the plant.

  Japan hopes that through direct investment, it can restore the production of advanced semiconductor chips in the country. In the 2010s, Japan's domestic chip manufacturers have withdrawn from competition in large-scale chip development and contracted out the production of cutting-edge semiconductors to companies such as TSMC.

  Looking around the world, major economies such as the U.S. and Europe are also racing to bring semiconductor production into the country for national security reasons. Earlier this year, the U.S. passed a $52 billion bipartisan bill to support semiconductor research, development and manufacturing.



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