Powerchip reportedly seeks government subsidies for new Japan fab

Chiang, Jen-Chieh, Taipei; Jessie Shen, DIGITIMES Asia 0

Credit: AFP

Pure-play foundry Powerchip Semiconductor Manufacturing (PSMC) is reportedly negotiating subsidies with the Japanese government with regards to the establishment of a new 12-inch wafer fab in Japan.

According to a recent Reuters report, which did not name its source, PSMC is exploring five potential sites in Japan for the potential US$5.4 billion fab, pending the outcome of subsidy discussions. One contender is Mie, a central Japanese prefecture close to Nagoya's industrial core and home to fabs run by Kioxia and Taiwan's UMC.

A 12-inch wafer foundry will be formed in Japan in collaboration between PSMC and SBI Holdings. This agreement was reached earlier this year as part of an initiative to strengthen the semiconductor supply chain.

PSMC stated in a company filing with the Taiwan Stock Exchange (TWSE) that it will not comment on undetermined subjects such as the location of future plant sites.