Taiwan Says No to Japan, Will Build Semiconductor Plant in India
Nikkei: implementing the project in India “will be significantly cheaper for the Taiwanese company”
By “taking away” from China some major technology manufacturers, including Apple, India has also put an end to Japan’s plans to set up an innovative semiconductor manufacturing plant on its soil.
The world’s largest semiconductor and microchip maker Taiwan Semiconductor Manufacturing Corp. (TSMC) has decided to drop plans to build its own plant in Japan and “focus on technology partnership with India” instead.
According to the Japanese business newspaper Nikkei, the implementation of a similar project in India “will be much less costly for the Taiwanese company in financial terms.” Also, unlike India, Japan suffers from a severe labor shortage for high-tech manufacturing.
According to Nikkei’s sources, the Taiwanese microchip maker has already “informed Japanese financial group SBI Holding” that it “no longer wishes to assume the risks of the partnership, as part of a document signed by the two companies to set up a microchip plant in northeastern Japan’s Miyagi prefecture.”
At the same time, TSMC announced that it will provide India’s Tata Group, one of the largest industrial and technology conglomerates in South Asia, with both the technological and logistical support needed to build a chip plant in India.
As Nikkei recalled, TSMC is already building its own plant in Japan, in Kumamoto Prefecture, which should be operational by the end of 2024.
