Nike reported on Friday that Taiwan ‘s TSMC and Japan’s Sony Group are considering building a chip factory in Japan, part of an investment of 800 billion JPY ($ 7.15 billion).
The plant, located in Kumamoto, southern Japan, expects to manufacture semiconductors for vehicles, camera image sensors and other products that are facing a global chip shortage, and is expected to begin operations by 2024, according to the report.
Denzo, Japan’s leading auto parts maker, is also expected to take part in the process, such as installing equipment at the site. The Toyota motor team member is looking for a fixed chip supply to use for its auto parts.
Both Sony and TSMC declined to comment, and Denzo was unable to comment immediately. TSMC, the world’s largest contract chip maker and Apple’s main supplier, said in July that it was reviewing plans to launch production in Japan.
TSMC was concerned about the concentration of chip-making capabilities in Taiwan, which produces the majority of the world’s most advanced chips. China does not rule out the use of force to bring the Democratic Islands under its control.
Japanese authorities are worried about supply chain stability in their industries, and a global chip shortage is forcing automakers to cut production.
© Thomson Reuters 2021