Powerchip Semiconductor Manufacturing Corporation (PSMC) and SBI’s collaboration to build a wafer plant in Japan has failed. SBI President Yoshitaka Kitao previously claimed that PSMC is an dishonest company. PSMC Chairman Frank Huang clarified on the 22nd that PSMC cannot bear the operational requirement of continuous production for over ten years at the new plant, and has yet to receive a complete funding and marketing operation report from SBI.
The collaboration was terminated as Japan required PSMC to apply for a subsidy of 140 billion yen in its name, but the subsidy fell to a company that PSMC could not control, requiring a ten-year operational guarantee. This contradicted PSMC’s original intention to assist in plant construction through technology licensing, and raised subsequent legal and managerial responsibilities, leading to a board resolution to end the partnership.
Huang pointed out that when signing the MOU with SBI, PSMC was responsible for providing technology, while SBI was to handle financial planning. However, as of June this year, there was still no complete financial plan, including how to secure funding and marketing.
Additionally, SBI applied for plant subsidies from Japan’s Ministry of Economy, Trade and Industry (METI). Although supported by the government, METI’s subsidy policy mandates that the recipient company must guarantee continuous production for over ten years. Given that SBI has no semiconductor industry experience, METI requires PSMC to share the guarantee responsibility.
Initially, there were hopes for building a plant in Japan due to its proximity to Taiwan. However, PSMC cannot bear the approximately 15-year operational timeline from construction to production, and emphasizes that no company could meet such conditions, stressing that this collaboration was not about honesty.
Due to inflation, establishing a plant in Taiwan costs around 40 billion NTD, while the Japanese plant would cost between 120 to 140 billion NTD, representing a cost increase of about four times.
Related:
- PSMC Partners with Tata for Semiconductor Plant in India
- TSMC Wins Record $6.6B Under U.S. CHIP Act Program
- 2025 TSMC Plans: $38B for 10 New Facilities
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