Through the signing of a memorandum of understanding (MOU) with SBI Holdings and Japan's Miyagi Prefecture, Powerchip Semiconductor Manufacturing (PSMC), a Taiwan-based pure-play foundry, has officially confirmed that JSMC's first fabrication facility (fab) will be located at the Second Northern Sendai Central Industrial Park in Ohira Village (Kurokawa District, Miyagi).
PSMC and SBI formed JSMC, a 12-inch foundry joint venture, earlier this year. PSMC stated that the MOU is predicated on the concept of receiving government subsidies from Japan.
PSMC stated that SBI is committed to collaborating closely with the Japanese government, Miyagi Prefecture, partners, and appropriate financial institutions to discuss various aspects of Japanese investment. More details will be released as they become available, according to the Taiwan-based foundry.
The progress of PSMC's JV fab in Miyagi has previously been revealed in local Japanese media. Miyagi is home to the country's automobile sector. The fab, which will deliver 28nm-55nm mature node manufacturing for automotive ICs, reportedly will cost a total of JPY800-900 billion (US$5.3-6 billion).
An estimated JPY400 billion will be invested in the first phase of PSMC's Japanese JV fab project, according to the reports. Construction is expected to commence in 2024 and be completed by 2026. The second phase of the project is still in the works.
PSMC's Japanese JV fab project can get up to JPY140 billion in Japanese government subsidies for the first phase of the project, which is approximately 30% of the plant's construction cost, according to the reports.
