Taiwan Semiconductor Manufacturing Co (TSMC) was tipped to work with a group of more than 20 Japanese companies on chipmaking technology, with Japan’s government to fund half the cost of a JPY37 billion ($343 million) production facility near Tokyo, The Nikkei reported.
The newspaper said the project is backed by the Ministry of Economy, Trade and Industry, and electronic component maker Ibiden is one of the domestic companies involved. Construction of a test production line will start around September, with full-scale research and development expected to begin in 2022.
Earlier in the year, the Taiwan-headquartered contract chipmaker announced plans to invest about $178 million in an advanced material R&D centre in the country.
Japan’s government encouraged TSMC to invest in local facilities as tension with China increase and the US looks to support domestic chip production with government funding during a worldwide chip shortage which is slowing production across many sectors.
Marc Einstein, chief analyst at Japan-based research company ITR, told Mobile World Live the move is in line with the government’s desire to bring manufacturing back to Japan and secure supply chains. “Now it has ponied up the money to support that effort.”
He noted major chipmakers recently said they expect global chip shortages to last for years, and “I am sure this was a factor in the decision”.
To boost capacity to help alleviate supply shortages, TSMC in April said it will nearly double its capex budget for 2021.Subscribe to our daily newsletter Back