Stocks involved in Japan’s semiconductor supply chain jumped in Tokyo on Tuesday following a report that chip giant Taiwan Semiconductor Manufacturing Co. will build an advanced packaging facility in Japan together with the country's trade ministry.
The two sides will soon sign a memorandum of understanding and form a 50-50 joint venture for the project, Taiwan’s United Daily News reported, without saying how large investment for the plant might be.
"This would be a positive surprise for Japan’s semiconductor sector, including device firms and parts suppliers, due to the large investment,” said Kazuyoshi Saito, a senior analyst for Iwai Cosmo Securities. "While the scale is still unclear, we can expect there to be a certain amount of orders, which could accelerate the potential recovery of Japan’s chip industry.”
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