Over 20 Japanese companies will work with Taiwan Semiconductor Manufacturing Co (TSMC) to develop cutting-edge chip manufacturing technology in Japan, reported Nikkei newspaper.
It further reported that the Ministry of Economy, Trade and Industry has been concerned about the Japanese semiconductor industry’s declining position in the global market, which led it to seek TSMC’s cooperation.
Japan’s government will pay half of the 37 billion yen (nearly $337 million) cost of a research facility, said the newspaper without disclosing its sources. The research facility will be in Tsukuba, Ibaraki Prefecture, near Tokyo.
Among the 20 Japanese firms, Ibiden and Shibaura Mechantronics are two prominent names, which make chip materials and manufacturing equipment. Other companies participating in the project include Asahi Kasei, a materials maker known for its ultrathin wiring; Shin-Etsu Chemical, which makes a new heat-dissipating material; Nagase & Co., a molding materials specialist; and Shibaura Mechatronics, a manufacturing equipment producer.
The Japanese government intends to establish a joint public-private sector concerns to cooperate with TSMC. It expects the efforts to pay off with improved international competitiveness for Japanese industry.
The newspaper also reported that the construction of a trial facility will began this summer at the earliest at the National Institute of Advanced Industrial Science and Technology, in Tsukuba, while full-blown research and development work will begin as early as 2022.
TSMC said in a statement to Reuters that the 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,” it added, without elaborating.
With the Taiwanese company embarking on making more powerful and sophisticated chips, this partnership will be crucial as it will allow TSMC to leverage Japanese companies and harness their strengths in materials and manufacturing equipment.
TSMC’s plan also includes coming up with 3D packaging technology, which vertically layers semiconductors. This will also be carried out in Japan.
