Taiwan's Powerchip and Japan's SBI Holdings to Construct $5.3 Billion Chip Factory in Miyagi Prefecture

Factory set to produce essential chips for electric vehicles and AI, helping Japan increase semiconductor capabilities as global demand surges. First phase of production scheduled for 2027.

• Taiwan's Powerchip Semiconductor Manufacturing Corporation (PSMC) and Japan's SBI Holdings are investing in a $5.3 billion chip-manufacturing plant in Miyagi Prefecture, northern Japan, with half of the cost covered by PSMC and SBI and the rest financed by foreign and domestic investors, bank loans, and government subsidies.
• The semiconductor factory is a strategic move amid increasing global demand for chips and export restrictions from the U.S. to key markets like China, with Japan aiming to advance its domestic semiconductor industry.
• The factory will manufacture 28-nanometer, 40-nanometer, and 55-nanometer semiconductors, which, while not being cutting-edge chips found in smartphones, are critical for automotive applications, a key industry in Japan with major carmakers like Toyota and Honda.
• Phase one of the project, scheduled for 2027, will involve a $2.8 billion investment to produce microcontrollers and power chips needed for power management in electric vehicles and artificial Intelligence, with a target of 10,000 wafers per month.
• Phase two of the project, planned for two years after phase one, aims to increase production to 40,000 wafers per month and introduce more advanced 28-nanometer technology chips.

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