TOKYO — A shortage of engineers is the “most difficult” challenge facing Taiwan’s Powerchip Semiconductor Manufacturing Corp. (PSMC) as it prepares to build a plant in Japan, with a recent wave of global chipmakers investing in the country expected to exacerbate the battle for talent.

PSMC, Taiwan’s third-largest contract chip manufacturer and the sixth biggest in the world, plans to invest 800 billion yen ($5.3 billion) to build a plant in Japan through a joint venture with financial group SBI Holdings. The first phase of production is slated to start in 2027.

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