SBI Chairman criticises PSMC for halting fab project

A significant collaboration between Taiwan’s PSMC and Japan’s SBI Holdings to build a semiconductor fab in Japan has been abruptly halted. PSMC informed SBI Holdings in late September that it could not proceed with the project, initially promised a year ago. SBI Holdings Chairman Yoshitaka Kitao expressed his frustration on social media, accusing PSMC of dishonesty and labelling the breakup as ‘a blessing in disguise.’

Kitao criticised the dissolution of the partnership, stating it was the first time SBI had to end a collaboration almost unilaterally after making significant concessions. He recalled discussions with key government officials and detailed plans for receiving Japanese government subsidies, only to be let down by PSMC’s failure to honour commitments. According to reports, PSMC cited an unwillingness to assume the risks associated with the project, leading to the termination of plans for the facility in Miyagi Prefecture, which was expected to start production by 2027.

The decision comes as PSMC has faced challenges in the semiconductor market, including oversupply issues from Chinese firms, resulting in operating losses for five consecutive quarters since Q2 2023. While PSMC intended to offer consulting, training, and technology transfer under a Fab IP model without directly investing in the factory, it raised concerns about the conditions set by Japan’s Ministry of Economy, Trade and Industry regarding operational guarantees.