Taiwan's semiconductor packaging and testing service provider, Powertech Technology, is planning to expand in Japan for the first time in years as it works to diversify its supply chain. Powertech Chairman D.K. Tsai stated that the company is evaluating a proposal to build a high-end chip packaging plant in Japan. However, Powertech would only proceed with such a plan if it could find partners for the investment.

Powertech CEO, D.K. Tsai, mentioned in an interview with Nikkei Asia that it is roughly two times more expensive to operate a chip packaging plant in Japan than in Taiwan. He also added that the company is in discussions with customers to analyze their interest in investing in Japan. Tsai highlighted TSMC’s Kumamoto project, which received investments from Sony and Denso.

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Additionally, Powertech is looking to diversify its supply chain away from China, where it recently sold some facilities. Japan, offering a stable and technologically advanced environment, has become an attractive option.

As the world's largest memory chip packaging and testing service provider, Powertech's move into Japan signifies a potentially major shift in the industry's landscape. Japan boasts a strong semiconductor industry, with major players like Kioxia and Sharp. Powertech's presence could enhance Japan's competitiveness and attract further investment.

About Powertech

Powertech Technology Inc. is a leading Taiwanese semiconductor assembly, packaging, and testing (OSAT) company. Founded in 1997, it has grown to become a major player in the global semiconductor industry, with over 18,000 employees and manufacturing facilities in Taiwan, China, and Japan.

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