SBI Holdings announced that it has reached a basic agreement with Powerchip Semiconductor Manufacturing Corp (PSMC), a major Taiwanese semiconductor contract manufacturer, to establish a preparatory company for the establishment of a plant in Japan.

According to the announcement, PSMC is the third largest semiconductor contract manufacturer in Taiwan and the sixth largest in the world. In addition to being able to produce both logic and memory semiconductors of different types, PSMC also has strength in power semiconductors for automotive applications. The new plant in Japan will produce semiconductors for automotive and industrial applications, with future plans to produce 3D stacked and high value-added semiconductors of 28 nanometers or smaller.

Yoshitaka Kitao, president of SBI, said that the company is currently looking at three or four candidate sites and that manufacturing could begin two years after construction begins.

The partnership between SBI and PSMC comes as Japan is providing billions of dollars in subsidies to foreign chip companies to attract them to build or expand production facilities so that automakers and technology companies can obtain key components amid rising global demand.

Japan has already pledged 400 billion yen ($2.8 billion) to help TSMC, the world's largest semiconductor contract manufacturer, build a plant in Kumamoto Prefecture to supply semiconductors to the Sony Group and auto parts maker Denso. It has also provided subsidies to help memory chip makers Kioxia and Western Digital expand production at their Japanese plants, and is funding U.S. chipmaker Micron Technology to increase production capacity at its Hiroshima plant.

Samsung Electronics, South Korea's semiconductor foundry business, aims to catch up with market leader TSMC, a Taiwanese semiconductor manufacturer, by increasing production capacity and introducing more advanced manufacturing technology.

Samsung announced that it will introduce a 2-nanometer manufacturing process for cell phone components by 2025 to expand applications. The company also announced plans to increase production in Pyeongtaek, South Korea, and Taylor, Texas, to strengthen its foundry division.

The company is trying to catch up to TSMC and at the same time respond to new challenges from Intel Corporation, which is entering the foundry market. While the semiconductor industry as a whole is suffering from sluggish demand for mobile and PC components, the artificial intelligence (AI) boom is driving interest in advanced processors.

Like other semiconductor makers, Samsung is trying to geographically diversify its manufacturing base, which is concentrated in East Asia. The company, which has operated its Austin, Texas, site for about 20 years, completed its new Taylor plant this year and aims to begin operations in late 2024.

With the expansion of production lines at the Pyeongtaek and Taylor plants, Samsung's production capacity will increase sevenfold by 2027 compared to 2021. In addition to its current semiconductor manufacturing facilities, Samsung will also expand into a new production facility in Yongin.

Chinese automaker BYD announced that it will invest R$3 billion ($602.7 million) in a new industrial complex in northeastern Brazil.

The complex, to be built on the site of a former Ford plant that closed in 2021, will consist of three plants and will be located in the Camacari Industrial Park in the northeastern state of Bahia.

The announcement reportedly follows a push by the Brazilian government to encourage BYD to build a new EV vehicle hub after Ford closed its plant in the state.

The plant is scheduled to begin operations in mid-2024.

According to a company statement, the first plant will specialize in the production of bus and electric truck chassis. The second plant will produce hybrids and EVs, with initial production estimated at 150,000 units per year, and the third plant will process lithium and iron phosphate for overseas markets.

The plant facility is expected to create more than 5,000 jobs.