Pushing technology tie-up between Japanese technology companies with Taiwan Semiconductor Manufacturing Co (TSMC), Japan's government has announced to pay half of the 37 billion yen ($337 million) cost of a research facility to develop chip manufacturing technology in Japan, The Nikkei said in a regulatory filing.
According to the Nikkei newspaper, about 20 Japanese companies, including electronic component maker Ibiden Co, will work with Taiwan Semiconductor Manufacturing Co to develop chip manufacturing technology in Japan.
Earlier in February the TSMC had announced that it will spend about $178 million to open a material research subsidiary near Tokyo. In the latest statement, TSMC has confirmed that the new facility “aims to leverage more expertise in the field of materials to bring value to the industry.”
“We appreciate the support from Japan's government for us to drive semiconductor technology advancement together with TSMC's partners in Japan,” TSMC said in a statement.
With the new tie-up, Japan looks to cooperate with the Taiwanese company to help its semiconductor manufacturers to stay competitive as chip demand grows with the expansion of 5G infrastructure, autonomous driving technology, data centers, and artificial intelligence (AI).