July 24, 2023 /SemiMedia/ -- According to Reuters, Powerchip Semiconductor Manufacturing Corporation plans to set up a joint venture to build a semiconductor factory in Japan within 5 to 7 years.

Powerchip and Japanese financial firm SBI Holdings said earlier this month that the Japanese government is investing in chipmaking capacity and that they aim to attract government subsidies to build factories.

As for a potential timeline, PSMC Japan president Joe Wu said he thinks 5 to 7 years, but it will depend on the business.

The factory aims to produce microcontrollers and power chips needed for electric vehicle power management for Japanese companies, and the location of the factory has not yet been determined.

Kyushu, a major chip-making hub, might be a good choice, but Powerchip is also in talks with other local governments. In addition, stable power supply and sufficient water resources must also be considered when selecting a chip factory.