TSMC, Sony Said to Be Considering Joint Chip Factory With Japan’s Help


Nikkei reported on Friday that Taiwan’s TSMC and Japan’s Sony Group are looking to jointly build a chip factory in Japan, with the government paying for some investment of about JPY 800 billion ($7.15 billion or Rs 53,600 crore). ready to do.

The plant in Kumamoto, southern Japan, is expected to produce semiconductors for automobiles, camera image sensors and other products hit by global chip shortages, and is expected to begin operations by 2024, the report said. .

Japan’s top auto parts maker Denso also wants to participate through steps such as installing equipment on site, the report said. Members of the Toyota Motor Group want a steady supply of chips used in their auto parts.

Both Sony And TSMC Denso declined to comment, while Denso was not immediately available to comment. TSMC, the world’s largest contract chip maker and major Apple supplier, said in July that it was reviewing plans to set up production in Japan.

TSMC is concerned about the concentration of chipmaking capacity in Taiwan, which produces most of the world’s most advanced chips. China does not rule out using force to bring the democratic island under its control.

Japanese officials are also concerned about the supply chain stability of their industries, with global chip shortages forcing automakers to cut production.

© Thomson Reuters 2021

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