Taiwan Semiconductor Manufacturing Co TSM rival Powerchip Semiconductor Manufacturing Corp (PSMC) is grappling with a significant challenge as it plans to establish a $5.3 billion semiconductor plant in Japan through a partnership with SBI Holdings, targeting production commencement in 2027. 

Joe Wu, the Japan head of PSMC, highlighted the shortage of chip engineers as the primary hurdle in this endeavor, emphasizing the global talent competition that could intensify due to the influx of investments from international chip companies into Japan. 

To mitigate this issue, PSMC aims to transfer over 200 engineers from Taiwan to Japan and intends to train young Japanese engineers in Taiwan, preparing a skilled workforce for the new facility, Nikkei Asia reports.

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Wu proposed the creation of a specialized school or course, in collaboration with the chip industry, educational institutions, and government agencies, dedicated to nurturing semiconductor talent. 

This initiative aims to benefit PSMC and bolster the overall talent pool, benefiting competitors like TSMC. 

Additionally, Wu mentioned the potential of recruiting engineers from other countries, such as India or the U.S., to fill the gap.

The push to expand semiconductor manufacturing in Japan by global giants, including TSMC, Micron Technology, Inc MU, and Samsung Electronics Co SSNLF, is partly driven by geopolitical concerns and the pursuit of supply chain diversification. 

TSMC has significantly advanced its international growth by inaugurating its inaugural semiconductor facility in Kumamoto, Japan, an initiative to enhance supply chain resilience amidst intensifying trade disputes between the U.S. and China.

The company had also disclosed plans for additional investment in another manufacturing facility within Japan, collaborating with key industry players like Sony Semiconductor Solutions, Toyota, and Denso.

Price Actions: TSM shares traded lower by 2.99% at $134.12 on the last check Tuesday. 

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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