TOKYO, Oct. 8 (Reuters) – Taiwanese TSMC (2330.TW) and Japan’s Sony Group Corp (6758.T) plan to jointly build a chip factory in Japan as the government is prepared to pay part of the investment of about 800 billion yen ($ 7.15 billion), the Nikkei reported on Friday.
The plant in Kumamoto, in southern Japan, is expected to produce automotive semiconductors, camera image sensors and other products and is expected to begin operations by 2024, according to the report.
A Sony spokesperson declined to comment.
TSMC officials were not immediately available for comment, but the world’s largest contract chipmaker and primary supplier to Apple Inc (AAPL.O) said in July it was reviewing a plan. installation of production in Japan.
TSMC is concerned about the concentration of chip manufacturing capacity in Taiwan, which produces the majority of the most advanced chips in the world. China does not rule out the use of force to bring the democratic island under its control.
Japanese officials are also concerned about the stability of its industries’ supply chain, with a global chip shortage forcing automakers to cut production.
($ 1 = 111.8600 yen)
Report by Shinji Kitamura in TOKYO and Ben Blanchard in TAIPEI; Writing by Ritsuko Ando; Editing by Kim Coghill
Our Standards: Thomson Reuters Trust Principles.