Source: Unsplash

Following the rumor that Sony would invest in TSMC’s planned fab in Japan, Japanese media revealed that more partners will join the endeavor. Denso, a part of the Toyota Group and an automotive component manufacturer, is rumored to be a new partner of the project, along with Mitsubishi Electric Corp. If confirmed, it would represent a total investment amount of 1 trillion JPY.

The said joint venture might take shape as fast as this year, with TSMC holding a 50% stake, but the role of the Japanese government is a decisive factor, as half of the investment into the foundry construction is expected to come from government subsidies.

For Denso, it is of great importance to strengthen its semiconductor supply chain. Together with Toyota, it set up a semiconductor company in 2017. Meanwhile, Mitsubishi Electric Corp. itself is the biggest power semiconductor company in Japan. Both are counting on TSMC’s Japanese fab to manufacture their products.

 

Source: UDN