What Is The Sendai Semiconductor Facility, PM Modi Will Visit During Japan Trip

Prime Minister Narendra Modi is on a two-day official visit to Japan for the 15th India-Japan Annual Summit with Prime Minister Shigeru Ishiba. As part of his engagements, he will travel by Shinkansen from Tokyo to Sendai on Saturday, where he is scheduled to tour key industrial facilities, including a semiconductor plant and a bullet-train coach manufacturing site.

What Is The Sendai Semiconductor Facility?

The facility near Sendai, in Miyagi Prefecture, is a new semiconductor wafer fabrication plant being developed by Powerchip Semiconductor Manufacturing Corporation (PSMC) of Taiwan. It is built in partnership with SBI Holdings and Japanese stakeholders under the joint venture Japan Semiconductor Manufacturing Company (JSMC).

It is being built at the Second Northern Sendai Central Industrial Park in Ohira Village and represents one of Japan's biggest pushes to revive its chip-making industry.

What Will The Plant Do?

The plant will manufacture 12-inch semiconductor wafers, starting with 40-nanometre technology, and later expanding to 28 nm and 55 nm nodes.

Its primary focus will be automotive electronics, which are in huge demand for electric vehicles and next-generation mobility.

Once operational, the plant is expected to produce around 40,000 wafers per month, making it a significant contributor to Japan's domestic chip supply.

Why Is Japan Investing In This?

Japan is aiming to reduce its dependence on imports and create its own resilient semiconductor supply chain.

The government is supporting the project with subsidies worth up to 140 billion Yen as part of an 800 billion Yen investment package.

The Sendai region already has a strong chip ecosystem, with suppliers like Renesas, SUMCO, Shin-Etsu, and research expertise at Tohoku University. This new plant will strengthen the region as a semiconductor hub.

Why Is PM Modi Visiting The Facility?

India and Japan are working closely on economic security, which includes semiconductors, AI, critical minerals, and clean energy. For India, stronger ties with Japan in this sector mean access to technology, supply-chain resilience, and investment opportunities.