By Sam Nussey and Miho Uranaka

TOKYO (Reuters) – Taiwan chipmaker Powerchip Semiconductor Manufacturing Corp aims to list a joint venture being set up to build a factory in Japan in five to seven years, an executive from the chipmaker said on Friday.

Powerchip and Japanese financial firm SBI Holdings earlier this month said they aim to attract government subsidies to build the plant amid a wave of investment in Japan aimed at boosting its chip manufacturing capabilities.

“I think about five to seven years… it depends on the business,” Joe Wu, President of PSMC Japan, told Reuters when asked about the timing for a potential listing.

The factory is intended to manufacture micro-controllers and power chips, which are needed for power management in electric vehicles, for Japanese companies. Its location is yet to be decided.

Powerchip said it sees scope for additional foundry capacity in Japan, which has seen a lack of investment.

“We want to come here and build up the capacity,” Wu said.

Companies with chip businesses include Renesas Electronics and Mitsubishi Electric.

Taiwan Semiconductor Manufacturing Co (TSMC) has secured subsidies for a plant in Kyushu that will supply chips to Sony Group and auto parts maker Denso Corp.

Kyushu, a major chipmaking hub, could be a good option but Powerchip is also speaking to other local governments, Wu said. Chip factories require stable electricity supply and abundant water.

The Taiwanese firm previously set up a joint venture in China to build a chip factory which listed in Shanghai this year.

Powerchip and SBI hope to attract additional funds for the Japan business and are targeting chip industry customers and financial investors as potential backers, Wu said.