December 14, 2023 /SemiMedia/ -- Powerchip Semiconductor Manufacturing Corporation (PSMC) recently stated that it will use its new factory in Japan to significantly expand its automotive semiconductor business.

"Automotive products currently account for 8% of our sales, and with our entry into Japan, we plan to increase this proportion to 30% in the future," said Frank Huang, chairman and CEO of PSMC.

PSMC plans to invest 800 billion yen (US$5.5 billion) in a joint venture with financial group SBI Holdings to build a factory in Ohira, Miyagi Prefecture, Japan.

In the first phase, the company will invest 420 billion yen to mass-produce 12-inch wafers at a monthly scale of 10,000 wafers starting in 2027. The goal is to produce 40,000 wafers per month when the factory is fully operational in 2029. The Japanese government is considering providing subsidies of up to 140 billion yen.

The new factory is expected to produce automotive microcontrollers and artificial intelligence chips, as well as automotive display drivers and power management chips.