Electronics giant Sony and Taiwanese chip giant TSMC have agreed to build a new mega-factory for computer chips in Japan.
The project will cost about 7 billion dollars, of which Sony is putting 500 million on the table through its subsidiary, both companies announced on Tuesday.
There is a worldwide shortage of computer chips, which is particularly felt in the automotive sector. TSMC already announced the construction of a new factory in Japan last month, but now it appears that Sony is also participating in the project. The company will acquire a 20 percent stake.
The Japanese government will also make a ‘significant financial contribution’, it sounds Tuesday. About half of the cost would be subsidized, Japanese media write. Earlier this week, it was announced that Japan is working on a program to subsidize such factories.
The new factory will be located in Kumamoto, on the island of Kyushu, in southwestern Japan. Construction will start next year, and production should be able to start by the end of 2024. The factory would be able to employ approximately 1,500 people, mainly highly educated people.