TSM - Taiwan's Powerchip Semiconductor SBI ink pact to build plant in Japan

2023-07-05 05:05:23 ET

Taiwan's Powerchip Semiconductor Manufacturing Corp. (PSMC) signed an agreement with Japanese financial services provider SBI Holdings ( OTCPK:SBHGF ) to help build a 12-inch wafer foundry fab in Japan as part of its effort to strengthen semiconductor supply chain.

The companies said that in the future, the two parties will jointly set up a preparatory company under this agreement, and via this company, they will gradually carry out related fab planning and construction.

PSMC Chairman Frank Huang said that in the future, the company will focus on applying AI edge computing and strengthen Japan's domestic IC supply chain, by developing 22/28 nm above process and Wafer on Wafer 3D stacking technology.

Through SBI, PSMC will develop more cooperative relations with Japanese industry and government and help reinvigorate Japan's semiconductor supply chain, while also achieving globalization of PSMC's production and sales to Taiwan plus one strategy, according to the companies.

Since Japan formed the semiconductor and digital industry strategy in June 2021, the semiconductor industry has shown enthusiasm to support the movement, the companies added.

Yoshitaka Kitao, president, CEO and representative director at SBI, noted that world semiconductor market will reach JP¥100T in 2030, and cooperation with Taiwanese companies is key to success of Japan's revitalization of the semiconductor industry.

Following supply chain hiccups seen in the recent past, countries have been gearing up to bolster supply of semiconductors. Earlier this week, Thierry Breton, the Commissioner for Internal Market of EU stressed on further semiconductor collaboration with Japan.

In May, Japanese Prime Minister Fumio Kishida met with executives from some of the world's largest semiconductor companies in an effort to boost cooperation for the industry and restructure its domestic industry.

Santa Clara, Calif.-based Intel ( INTC ) in June announced plans to set up chip plants in Germany and Poland as part of a larger $88B investment plan in Europe over the coming years to bolster semiconductor capacity.

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