Daily Management Review

JV Chip Factory Being Planned By TSMC And Sony, Japan Government To Help: Nikkei


JV Chip Factory Being Planned By TSMC And Sony, Japan Government To Help: Nikkei
Building of a joint venture chip factory in Japan is being contemplated by Sony Group Corp. of Taiwan and Sony Group Corp. of Japan, and the Japanese government is ready to finance a portion of the investment of about 800 billion yen ($7.15 billion), said a report published in the Nikkei.
According to the report, the proposed factory in Kumamoto, in southern Japan, could be expected to start manufacturing semiconductors for automobiles, camera image sensors, and other products that have been affected by a global chip shortage, by 2024.
The Nikkei report also stated that Denso, Japan's largest auto parts manufacturer, is also interested in getting involved in the project and wants to participate by setting up equipment on the factory site. The member of the Toyota Motor Group is looking for reliable chip supplies for its auto parts.
No comment in the story about the possible development was available from both Sony and TSMC as well as Denso.
TSMC was already considering a strategy of setting up a production unit of semiconductor chips in Japan, the largest contract chipmaker in the world and one of the major suppliers for Apple Inc had said in July.
The high concentration of semiconductor chip making capacity in Taiwan was a cause of concern, TSMC has been saying. The majority of the most advanced chips used in the world currently are manufactured in Taiwan. One of the issues concerning tee global chip industry is the threat of destabilization of Taiwan as China has not ruled out it using military force for bringing the democratic island under its control which could be detrimental for chip making in Taiwan.
On the other hand, the supply chain stability of its industries is the cause of worry for Japanese officials as the production and output of the auto makers of the country have been severely hit by the global chip shortage.