Japan's SBI Holdings and Taiwan's Powerchip Semiconductor Manufacturing Corporation have agreed with local authorities to build a new chip factory in northeastern Japan.
The Japanese online financial services provider and PSMC said last month they will jointly invest more than 5 billion dollars to construct the plant in Miyagi Prefecture.
The governor of Miyagi and the mayor of the village where the factory will be located signed an agreement on the plant's location with a PSMC executive on Tuesday.
They will cooperate in areas including construction, securing human resources and approval procedures.
Joe Wu, vice president of PSMC, will head the firm operating the plant.
"It's important to secure and develop human resources, and I think the Tohoku region is a good place for semiconductor companies in that sense," Wu said.
The facility is scheduled to be built in two stages on the assumption that it will receive government subsidies. The companies said they aim to start production in 2027.