File photo: The Taiwan Semiconductor Manufacturing Company (TSMC) logo is displayed at its headquarters in New State, Taiwan on August 31, 2018. Reuters / Tyrone Siu
8 October 2021
TOKYO (Reuters) – TSMC in Taiwan and Sony Group Corporation in Japan are looking to jointly build a chip factory in Japan, and the government will pay a portion of an investment of about 800 billion yen ($7.15 billion), according to Nikkei told on Friday that it was ready.
The factory in Kumamoto City, southern Japan, is expected to produce semiconductors for automobiles and camera image sensors, which have been hit by global chip shortages, and is expected to begin operations by 2024.
Sony and TSMC declined to comment. However, TSMC, the world’s largest contract chip maker and a major supplier of Apple Inc., said in July that it was considering production plans in Japan.
TSMC is concerned that its chip manufacturing capability is concentrated in Taiwan, which produces the world’s most advanced chips. China has not ruled out using force to bring the democratic islands under control.
Japanese officials are also concerned about the stability of the industry’s supply chain as global chip shortages force automakers to cut production.
($1 = 111.8600 yen)
(Reporting by Shinji Kitamura in Tokyo and Ben Blanchard in Taipei, written by Ritsuko Ando, edited by Kim Coghill and Kirsten Donovan)