TSMC, Sony will invest $ 7 billion in the new chip plant in Japan

TOKYO (Reuters) – Taiwan Semiconductor Manufacturing Co. (TSMC) said on Tuesday it would build a $ 7 billion chip plant in Japan. Sony (NYSE 🙂 Group, the Japanese government welcomed the move.

Sony will invest about $ 500 million in the factory, he said separately.

Local media said last month that it would supply semiconductors to Sony’s image sensor business, construction of the factory will begin in 2022, and production will begin in late 2024, the companies said in a press release.

The decision has been a success for Japanese industry ministry officials as the world’s first contract maker TSMC wants to build chips to supply chips to Japanese electronic device manufacturers and car companies, as trade friction between the US and China threatens to disrupt supply chains and demand. as it grows as a key component.

“Fab (plant) is expected to directly create about 1,500 high-tech professional jobs and have the capacity to produce 45,000 12-inch ostriches per month,” Sony and TSMC said.

The plant will produce 22-nanometer and 28-nanometer chips to meet the high global demand for chip technologies, they said.

They added that the project has “a lot of support from the Japanese government”, although they did not say that this includes financial support.

Economic Security Minister Takayuki Kobayashi approved the move on Wednesday without wanting to specify the nature of government support.

Taiwan’s technology power, home to chipmakers like TSMC, has closed some self-production lines and led efforts to address the chip shortage that has affected consumer electronics manufacturers around the world.

TSMC, an important supplier to Apple (NASDAQ :), produces some of the most advanced semiconductors in the world.

The company is committed to spending $ 100,000 billion over the next three years to increase chip capacity and is building a $ 12 billion chip manufacturing plant in the U.S. state of Arizona.