This was reported by CNBC, as reported by Ukrinform.

According to the companies, the first phase of the project in Miyagi Prefecture, north of Japan’s capital Tokyo, will require an investment of 420 billion yen.

PSMC and SBI Holdings will pay half of the cost of the facility, while the rest will come from foreign and domestic investors, bank loans and government subsidies.

PSMC and SBI facility will produce semiconductors in 28 nanometer, 40 nanometer and 55 nanometer categories. While these are not the most advanced chips used in smartphones, they are key to automotive applications.

The companies have not released information about the timing of construction or when the facility will be operational, but said those details would emerge once they become more “concrete.”

Japan is said to be aiming to boost its semiconductor industry and chip production, and the construction of the massive facility underscores the government’s efforts in this area.

As reported by Ukrinform, TSMC, the world’s largest independent semiconductor manufacturing company based in Taiwan, has approved a 3.5 billion euro investment for the construction of its first facility in Europe.