Japanese financial group
The two companies have agreed to set up a preparatory company for the project, with an eye to seeking government subsidies, SBI said. The amount of investment, the timing of construction and the plant's location are still to be decided.
The new plant will produce chips used for cars and other industrial equipment, in the belief demand for such chips will continue to grow along with the rising popularity of electric vehicles, a SBI spokesman said.
The joint venture will consider producing more advanced chips in the future than the 40 to 55 nanometer chips it plans to produce for the time being, the Japanese company said. PSMC is the world's sixth biggest contract chipmaker, according to SBI.
The plan comes as
The Japanese government has agreed to offer massive subsidies for the plant under construction, which will be jointly operated by
The state-backed chipmaker aims to begin mass production of chips with state-of-the-art 2-nanometer technology in five years.
==Kyodo
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