October 31, 2023 /SemiMedia/ -- Wafer foundry Power Semiconductor Manufacturing Co., Ltd. (PSMC) and Japan's SBI Holdings Co., Ltd. plan to build a new fab in Miyagi, Japan. The fab plans to break ground in 2024 and aims to start operations in 2026 to produce computing processing chips ranging from 55nm to 28nm, providing a more stable supply of chips used in various industries including automobiles. The new fab's monthly production capacity target is 10,000 12-inch wafers.

According to Power Semiconductor, the first phase of construction will start as soon as 2024, with an investment of approximately 400 billion yen (US$2.6 billion). The Japanese Ministry of Economy, Trade and Industry (METI) will provide up to 140 billion yen in subsidies for the project; the time and plan for the second phase will be determined later, with a total investment amount of approximately 800 billion yen.

According to reports, Miyagi Prefecture, where the new fab is located, already has a high concentration of automobile industry factories and good related logistics. Automotive applications will be the main market for the fab in the future.

Power Semiconductor Manufacturing Co., Ltd. and SBI Holdings Co., Ltd. will establish a joint venture in Japan to operate factories in Japan.