Powerchip's looking at 5 sites in Japan for $5.4B factory
Taiwanese wafer foundry service provider Powerchip Semiconductor Manufacturing Corp (PSMC) is reportedly mulling five different sites in Japan for a proposed USD 5.4 billion facility.
Back in July, Evertiq reported that Powerchip was looking to set up a new JV, together with Japanese financial firm SBI Holdings to attract government subsidies to build the new manufacturing plant
In its original announcement, the company said that the proposed factory would manufacture microcontrollers and power chips – used in the power management systems in electric vehicles.
These negotiations are now, according to two sources with insight, moving forward and the Taiwanese company is currently considering five different sites including Mie prefecture, according to a Reuters report.
One of the sources told Reuters that the investment in the future facility is expected to amount to JPY 800 billion (USD 5.35 billion) and that Powerchip is currently seeking subsidies to pay a portion of the cost of the first phase.
According to an SBI representative, negotiations with the Japanese government are underway, and a formal application for subsidies for the JPY 420 billion (USD 2.8 billion) first phase is planned, the report continues.