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Taiwan's Powerchip to Invest $5.4 Billion in Japanese Fab for Advanced Chip Production

Updated: Dec 18, 2023

Powerchip Semiconductor Manufacturing Corp, a Taiwanese chipmaker, has announced its decision to establish a $5.4 billion fab in northern Japan.

Credits: REUTERS

The company has chosen Miyagi prefecture as the location for the planned foundry. While the project is yet to receive government subsidies, talks have been progressing, indicating a commitment by Taiwanese chipmakers to manufacturing in Japan.

Taiwan's TSMC has also shown interest in Japan as a production base, with its new fab construction on track. Powerchip founder and Chairman Frank Huang emphasised the need for Japan to have its own supply chain. He stated that the cost structure in Taiwan and Japan is not significantly different.

The planned fab in Miyagi prefecture will focus on manufacturing micro-controllers, power chips for electric vehicle power management and chips for artificial intelligence. The first phase, scheduled for 2027, will involve the production of chips using 40-nanometre and 55-nanometre technology, with a targeted monthly output of 10,000 wafers. The second phase, planned for two years later, aims to introduce 28-nanometre technology with a targeted monthly output of 40,000 wafers.

The chosen location for the foundry is an industrial park near the city of Sendai, which offers ample land, water and power resources. Powerchip aims to reduce costs by referring to its plans for a fab being built in Taiwan and is already in discussions with construction firms.

Powerchip and Japanese financial firm SBI Holdings announced their plan to build the fab in July and received proposals from over 30 local governments across Japan. The Japanese government's generous subsidies for chipmaking have attracted significant investment, including from companies like Rapidus and TSMC.

  • Powerchip Semiconductor Manufacturing Corp has selected Miyagi prefecture in northern Japan for its planned $5.4 billion fab.

  • The company aims to manufacture micro-controllers, power chips for electric vehicles and chips for artificial intelligence.

  • The first phase of the fab, planned for 2027, will produce chips using 40-nanometre and 55-nanometre technology.

  • The second phase, scheduled for two years later, will introduce 28-nanometre technology.


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