Taiwan's Powerchip targets listing in 5-7 years for Japan venture

Powerchip Semiconductor Manufacturing

21/07/2023 09:30

By Sam Nussey and Miho Uranaka
       TOKYO, July 21 (Reuters) - Taiwan chipmaker Powerchip
Semiconductor Manufacturing Corp  6770.TW  aims to list a joint
venture being set up to build a factory in Japan in five to
seven years, an executive from the chipmaker said on Friday. 
    Powerchip and Japanese financial firm SBI Holdings  8473.T 
earlier this month said they aim to attract government subsidies
to build the plant amid a wave of investment in Japan aimed at
boosting its chip manufacturing capabilities. 
    "I think about five to seven years... it depends on the
business," Joe Wu, President of PSMC Japan, told Reuters when
asked about the timing for a potential listing.     
    The factory is intended to manufacture micro-controllers and
power chips, which are needed for power management in electric
vehicles, for Japanese companies. Its location is yet to be
decided.
    Powerchip said it sees scope for additional foundry capacity
in Japan, which has seen a lack of investment. 
    "We want to come here and build up the capacity," Wu said.
    Companies with chip businesses include Renesas Electronics
 6723.T  and Mitsubishi Electric  6503.T .
    Taiwan Semiconductor Manufacturing Co (TSMC)  2330.TW  has
secured subsidies for a plant in Kyushu that will supply chips
to Sony Group  6758.T  and auto parts maker Denso Corp  6902.T .
    Kyushu, a major chipmaking hub, could be a good option but
Powerchip is also speaking to other local governments, Wu said.
Chip factories require stable electricity supply and abundant
water. 
    The Taiwanese firm previously set up a joint venture in
China to build a chip factory which listed in Shanghai this
year. 
    Powerchip and SBI hope to attract additional funds for the
Japan business and are targeting chip industry customers and
financial investors as potential backers, Wu said. 
    

 (Reporting by Sam Nussey and Miho Uranaka;Editing by Elaine
Hardcastle)
 ((sam.nussey@tr.com;))