In Bid To Resolve Chip Shortage, TSMC And Sony Building A Chip Factory In Japan

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In Bid To Resolve Chip Shortage, TSMC And Sony Building A Chip Factory In Japan

The Japanese government is ready to pay for some of the investment of about 800 billion yen. (Image Credit: Reuters)

TSMC has been concerned about the the concentration of chipmaking capability in Taiwan, which produces the majority of the world’s most advanced chips.

  • Reuters
  • Last Updated:October 11, 2021, 10:02 IST
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Taiwan’s TSMC and Japan’s Sony Group Corp are considering jointly building a chip factory in Japan, with the government ready to pay for some of the investment of about JPY 800 billion (roughly Rs 53,338 crores), the Nikkei reported on Friday. The plant in Kumamoto, southern Japan, is expected to produce semiconductors for automobiles, camera image sensors and other products which have been hit by a global chip shortage, and is likely to start operations by 2024, the report said.

Both Sony and TSMC declined to comment. But TSMC, the world’s largest contract chipmaker and major Apple supplier had said in July that it was reviewing a plan to set up production in Japan.

TSMC has been concerned about the the concentration of chipmaking capability in Taiwan, which produces the majority of the world’s most advanced chips. China does not rule out the use of force to bring the democratic island under its control.

Japanese officials are also worried about the supply chain stability of its industries, with a global chip shortage forcing automakers to cut production.

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