Japanese Companies To Work With TSMC On Chip Making Technologies

Chips and their related technologies are used in the production of virtually everything people need, from smartphones to computers and simple everyday items like electric toothbrush. The recent shortage in chips has led many companies to bringing up solutions to mitigate the effects of the shortage as well as make these chips available.

According to Nikkei newspaper, about twenty Japanese companies have decided to work with Taiwan Semiconductor Manufacturing Co. (TSMC). This collaboration is aimed at developing a chip making technology in Japan.

As reported by the newspaper, the Japanese Government will pay half of the total cost of developing a research facility. The research facility would cost a total of 37 billion Yen, the equivalent of $337 million. The newspaper, however, did not disclose its sources as to where the information was gotten from or who confirmed it.

In February of this year, TSMC announced that it plans on opening a material research subsidiary near Tokyo and that it would cost them about $178 million to execute.

Speaking to Reuters about the development, TSMC said that the facility that it plans on developing “aims to leverage more expertise in the field of materials to bring value to the industry”

The company also added that “We appreciate the support from Japan’s government for us to drive semiconductor technology advancement together with TSMC’s partners in Japan”

Ibiden Co., an electric component maker, is one of the Japanese companies that plan on partnering with TSMC on chip making technologies. The company, however, did not immediately give response to requests for comments.

The major reason why these Japan is partnering with TSMC for chip making technologies is to assist local semiconductor makers to be able to stay competitive as the demand for chips grows with emerging technologies such as 5G, Artificial Intelligence, Data Centres, Autonomous Driving Technology, etc.

Many other companies around the world are either working on building a chip plant, partnering with chip companies or making research as to how they can be a part of the process. One way or the other, these companies are getting involved in the march against the global chip shortage. According to the founder of Dell Technologies, the global chip shortage may last a few years.