Taiwan’s Powerchip Semiconductor Manufacturing Corp. and Japanese investment firm SBI Holdings Inc. have announced a collaboration to establish a foundry in Japan, catering to the rising demand for locally sourced chips. SBI will play a crucial role in raising funds for the joint venture, which aims to commence production with 40-nanometer and 55-nm automotive and industrial chips. The partnership also has plans to produce more advanced 28-nm chips in the medium to long term, according to SBI President Yoshitaka Kitao.

Specific details regarding the factory’s location and timeline are yet to be determined. However, the leading contract chipmaker globally, Taiwan Semiconductor Manufacturing Co., is simultaneously constructing a plant in southwest Japan that is expected to become operational as early as next year.

During a recent news conference, Masayuki Otani, the chief market analyst at Securities Japan, highlighted the importance of recovering the investment made in this venture. Following the announcement, shares in SBI rose by 2%, while Powerchip witnessed a 2.3% increase.

In a bid to revive its chip industry, financial firm SBI Holdings has decided to support Powerchip Semiconductor Manufacturing in establishing a factory in Japan. SBI will form a company to assist in planning, fundraising, lobbying for government subsidies, and finding a suitable location for semiconductor production.

This collaboration between SBI and Powerchip comes as Japan offers substantial subsidies amounting to billions of dollars to attract foreign chip companies. The goal is to encourage the establishment or expansion of chip production facilities, ensuring that Japanese automakers and technology firms have uninterrupted access to this critical component amid surging global demand.

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