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TSMC and Sony considering joint chip factory, Japan gov’t to help -Nikkei By Reuters

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© Reuters. FILE PHOTO – A Taiwan Semiconductor Manufacturing Co logo is seen in its Hsinchu headquarters on August 31, 2018. REUTERS/Tyrone Siu

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TOKYO, Reuters – Taiwan’s TSMC, and Japan’s Sony Group Corp (NYSE: ) Group Corp is considering joint construction of a Japan-based chip plant. According to Friday’s report, the government will pay some part of the $8.15 billion ($800 billion) investment.

According to the report, Kumamoto’s plant will produce semiconductors that are used in automobiles and camera images sensors. It is anticipated to begin operations in 2024.

Sony and TSMC refused to comment. TSMC was the biggest contract chipmaker worldwide and a key supplier to Apple Inc (NASDAQ;) in July. It had stated that it was looking into establishing production in Japan.

TSMC was concerned about Taiwan’s high level of chipmaking capacity. Taiwan is home to the vast majority of world-class chips. China is not opposed to using force in order to take the democratic island under its sway.

Japanese officials are concerned about their supply chains stability, as a shortage of chip technology has forced automakers to reduce production.

($1 = 111.8600 yen)

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