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Li Jidian plans to build a factory in Japan to promote its automotive chip business
2023-12-15

The head of Power Semiconductor Manufacturing (PSMC) recently stated that the company will use its new factory in Japan as a springboard to significantly expand its automotive semiconductor business. "Japan has huge opportunities," said Huang Chongren, CEO of Li Jidian, in a media interview. Japan has a broad market prospect and a geographical advantage where many car companies gather.


He added, "Currently, automotive products only account for 8% of our sales, and by entering the Japanese market, we plan to increase this proportion to 30% in the future.".


In order to better enter the Japanese market, Li Jidian plans to jointly invest 800 billion yen (approximately 5.5 billion US dollars) with the financial group SBI Holdings to establish a joint venture and build a new factory in Ohira City, Miyagi Prefecture, Japan.



In the first phase, the company will invest 420 billion yen and begin mass production of 12 inch wafers on a monthly scale of 10000 pieces starting from 2027. The goal is to produce 40000 wafers per month when the factory is fully operational by 2029. The Japanese government is considering providing subsidies of up to 140 billion yen.


Li Ji Dian is the third largest foundry chip manufacturer in Taiwan and the sixth largest in the world. The company plans to jointly invest 800 billion yen (approximately 5.5 billion US dollars) in a joint venture with the financial group SBI Holdings and establish a factory in Ohira City, Miyagi Prefecture, Japan.


The new Miyagi factory will play a crucial role, expected to produce microcontrollers and artificial intelligence chips for automobiles, as well as automotive display drivers and power management chips manufactured by TSMC in Taiwan. At present, TSMC is developing and manufacturing older generation semiconductor products with a diameter of 28 nanometers or more in Taiwan, mainly used in consumer electronics products such as smartphones and personal computers. The company is striving to enter the automotive industry and is expected to grow with the development of electrification.


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