In a bid to solve chip shortages, TSMC and Sony are building a chip factory in Japan

The Japanese government is willing to pay for some of the investment of around 800 billion yen. (image credit: Reuters)

TSMC is concerned about the concentration of chipmaking capacity in Taiwan, which produces most of the world’s most advanced chips.

  • Reuters
  • Last Update:11 October 2021 10:02 AM IST
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Taiwan’s TSMC and Japan’s Sony Group Corp are looking to jointly build a chip factory in Japan, with the government willing to pay for some investment of around JPY 800 billion (about Rs 53,338 crore), Nikkei said. Reported on Friday. The plant in Kumamoto, southern Japan, is expected to produce semiconductors for automobiles, camera image sensors and other products hit by global chip shortages, and is expected to begin operations by 2024, the report said. .

Both Sony And TSMC declined to comment. But TSMC, the world’s largest contract chip maker and major Apple The supplier said in July that it was reviewing plans to set up production in Japan.

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

Japanese officials are also concerned about the supply chain stability of their industries, with global chip shortages forcing automakers to cut production.

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