Chip maker TSMC, Sony partner on new $7 bn plant in Japan

Taiwanese spot elephantine TSMC volition spouse with Sony connected a caller $7 cardinal works successful Japan, the firms announced Tuesday, arsenic an ongoing planetary semiconductor shortage squeezes the accumulation of everything from cars to TVs and gaming consoles.

Taiwan Semiconductor Manufacturing Company (TSMC) had announced plans for its archetypal works successful Japan earlier this month, with operation expected to statesman adjacent year.

But it offered much details successful a connection connected Tuesday, including that the archetypal expenditure connected the works is expected to full $7 billion.

It said the Japanese authorities was offering "strong support", without offering immoderate specifics. Local media reports suggested the authorities was considering ploughing much than $4 cardinal into the plant.

TSMC said it was partnering with Sony Semiconductor Solutions (SSS) Corporation, a Sony subsidiary, connected the works to beryllium built successful confederate Japan's Kumamoto.

The firms volition make a associated Japanese subsidiary, with SSS taking an equity involvement of little than 20 percent for an concern of astir $500 million.

The determination comes during a planetary shortage of semiconductors caused by surging request during the pandemic paired with proviso issues.

The Japan works is not expected to statesman accumulation earlier 2024.

"While the planetary semiconductor shortage is expected to beryllium prolonged, we expect concern with TSMC to lend to securing a unchangeable proviso of logic wafers, not lone for america but besides for the wide industry," SSS president and CEO Terushi Shimizu said successful a statement.

The firms said the works was expected to person a monthly accumulation capableness of 45,000 12-inch wafers, and would straight make astir 1,500 high-tech nonrecreational jobs.

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© 2021 AFP