tsmc: TSMC and Sony consider joint chip factory, Japanese government to help -Nikkei


TOKYO: Taiwanese TSMC and Japanese Sony Group Corp are planning to jointly build a chip factory in Japan, with the government willing to pay part of the investment of around 800 billion yen ($ 7.15 billion), the Nikkei reported on Friday.

The plant in Kumamoto, southern Japan, is expected to produce semiconductors for automobiles, camera image sensors and other products that have been hit by a global chip shortage, and is expected to begin operations by 2024, according to the report.

Japan’s leading auto parts maker

is also looking to participate through steps such as placing equipment on site, according to the report. The Toyota Motor Group member is looking for stable supplies of chips used in its auto parts.

Sony and TSMC declined to comment, while Denso was not immediately available for comment. TSMC, the world’s largest contract chip maker and main supplier to Apple Inc, said in July it was considering a plan to set up production in Japan.

TSMC is concerned about the concentration of chip manufacturing capacity in Taiwan, which produces the majority of the most advanced chips in the world. China does not rule out the use of force to bring the democratic island under its control.

Japanese officials are also concerned about the stability of its industries’ supply chain, with a global chip shortage forcing automakers to cut production.

(Reporting by Shinji Kitamura in Tokyo and Ben Blanchard in Taipei; Writing by Ritsuko Ando; Editing by Kim Coghill, Kirsten Donovan and Lincoln Feast.)

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