TAIPEI (Taiwan News) — Powerchip Semiconductor Manufacturing Corporation (PSMC) announced Saturday (Sept. 28) that it will be pulling out of a new chip plan with Japan’s SBI Holding in Miyagi Prefecture.
PSMC said the cooperation with SBI was under its “Fab IP model,” where the company provides consulting services for plant construction, personnel training, and technology transfer, per CNA. The company said it had no plans to invest in or lead the new plant’s operations nor would it take on the project's risks, per Nikkei Asia.
PSMP reiterated that since the project involved fee-based services and technology transfer under the Fab IP model, the termination of the new plant setup with the Japanese partner has no causal relationship with the company’s profit and loss.
SBI established a joint venture with PSMC in August 2023 and announced plans for the Miyagi plant in October. Production was expected to begin in 2027 to supply chips for the automotive industry.
Meanwhile, PSMC signed a definitive agreement with Tata Electronics on Thursday (Sept. 26) to build a fab in Gujarat, per press release. The plant will be the first in India to use 300 mm diameter wafers.
