Powerchip Semiconductor Takes on Taiwan Semi With Ambitious Japan Plant Amid Engineer Shortage
Portfolio Pulse from Anusuya Lahiri
Powerchip Semiconductor Manufacturing Corp (PSMC) is planning to build a $5.3 billion semiconductor plant in Japan in partnership with SBI Holdings, aiming to start production in 2027. The project faces a significant challenge due to a shortage of chip engineers. PSMC plans to transfer over 200 engineers from Taiwan and train young Japanese engineers to overcome this. The initiative could also benefit competitors like Taiwan Semiconductor Manufacturing Co (TSMC), which is also expanding in Japan along with Micron Technology, Inc (MU), and Samsung Electronics Co (SSNLF). TSMC's shares dropped by 2.99% to $134.12.
March 05, 2024 | 6:27 pm
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NEGATIVE IMPACT
TSMC faces competition from PSMC's new semiconductor plant in Japan but may benefit from the talent development initiative. Shares fell 2.99% to $134.12.
TSMC's stock price drop of 2.99% indicates a negative short-term impact, likely due to the announcement of PSMC's new plant which introduces competition. However, the talent development initiative by PSMC could indirectly benefit TSMC by alleviating the engineer shortage, which is a critical issue for the industry.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
Micron Technology, Inc is part of the semiconductor expansion in Japan, which could face challenges from the engineer shortage but also benefit from industry-wide talent development initiatives.
Micron Technology is mentioned as part of the semiconductor expansion in Japan. The engineer shortage presents a challenge, but the company could benefit from the broader industry efforts to develop talent, led by PSMC and potentially benefiting all players in the region.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70
NEUTRAL IMPACT
Samsung Electronics Co is involved in the semiconductor expansion in Japan, which may be impacted by the engineer shortage but could also gain from the talent development efforts.
Samsung Electronics is involved in the semiconductor expansion in Japan and faces similar challenges as Micron Technology due to the engineer shortage. However, the company could also benefit from the industry-wide efforts to develop talent, indicating a neutral short-term impact.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70