The planned collaboration between Taiwan’s Powerchip Semiconductor Manufacturing Corp (PSMC) and Japan’s SBI Holdings to build a chip factory in Japan has fallen through, sparking a public dispute between the companies.
SBI Holdings Chairman Yoshitaka Kitao took to Facebook to criticize PSMC, accusing the Taiwanese foundry of reneging on its commitments. Kitao described the partnership’s dissolution as “a blessing in disguise” and quoted Confucius to express his disappointment.
PSMC reportedly informed SBI in September that it couldn’t proceed with the project in Miyagi Prefecture, which was set to begin production by 2027. The Taiwanese firm cited concerns over guaranteeing continuous production for 10 years, as required by Japan’s subsidy policy.
The collapse comes as PSMC faces financial pressures, having reported operating losses for five consecutive quarters since Q2 2023. The company has struggled with mature node production amid oversupply from Chinese competitors.
This setback highlights the challenges in cross-border semiconductor collaborations, even as governments push for domestic chip production to secure supply chains.
