Powerchip targets Japanese JV to boost chip production
Taiwan chipmaker Powerchip Semiconductor Manufacturing says it wants to set up a new JV in Japan, which it will list in 'five to seven years'.
The company is teaming up with Japanese financial firm SBI Holdings on the project. According to Reuters, the partners want to attract government subsidies to build the new manufacturing plant, and plan to list the joint venture within by the end of the decade.
The proposed factory will manufacture micro-controllers and power chips, which are used in the power management systems of electric vehicles.
Powerchip believes chip manufacturing capacity is low in Japan, and wants SBI to start the planning and fundraising process for a new facility, including lobbying for government subsidies and finding the best location. Powerchip is currently looking at three or four potential sites.
Japan is addressing its need for a more robust domestic chip sector. It has promised 400 billion yen (USD 2.8 billion) to help Taiwan Semiconductor Manufacturing Co (TSMC), to build a plant in Kumamoto prefecture that will supply semiconductors to Sony Group and auto parts maker Denso Corp. It has also offered subsidies to Kioxia, Western Digital and Micron Technology.
