SBI, Taiwan's PSMC To Build Chip Factory In Japan

Japanese financial group SBI Holdings Inc. said Wednesday it will set up a joint venture with Taiwanese semiconductor maker Powerchip Semiconductor Manufacturing Corp. (PSMC) to build a chip factory in Japan, in a move to bolster the country's efforts to revive the industry, Mainichi Japan reported.

Photo Insert: PSMC is the world's sixth biggest contract chipmaker.

The two companies have agreed to set up a preparatory company for the project, with an eye to seeking government subsidies, SBI said. The amount of investment, the timing of construction and the plant's location are still to be decided.

The new plant will produce chips used for cars and other industrial equipment, in the belief demand for such chips will continue to grow along with the rising popularity of electric vehicles, an SBI spokesman said.

The joint venture will consider producing more advanced chips in the future than the 40 to 55 nanometer (nm) chips it plans to produce for the time being, the Japanese company said.

PSMC is the world's sixth biggest contract chipmaker, according to SBI.

The plan comes as Japan tries to rebuild itself as a chip superpower as increasing technological rivalry between the United States and China prompts global semiconductor companies to diversify their production sites.

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