Thank you very much for taking time out of your busy schedule today to attend the SBI Holdings press conference. I'd like to take this opportunity to thank you all for your continued support. First, allow me to introduce today's participants. Mr. Yoshitaka Kitao, Representative Director, Chairman, President, CEO of SBI Holdings. Mr. Frank Huang, Chairman of Powerchip Group, Chairman of PSMC. Mr. Joe Wu, Representative Director and President of PSMC Japan. Mr. Yoshihiro Murai, Governor of Miyagi Prefecture. Mr. Masato Takamura, Executive Vice President and Representative Director, SBI Holdings, President and Representative Director, SBI Securities. First, we'd like to ask Mr. Kitao, Chairman and President of SBI Holdings, to start the slide presentation on the progress of the establishment of the semiconductor foundry. After that, we will ask for greetings and presentations from other participants. President Kitao, please take the floor.
Thank you for your introduction. My name is Kitao. Thank you so much for sparing your time out of your busy schedules to be here. The things have been said here to a certain extent, I'd like to explain to you what has been decided upon. First, I'd like to speak about the establishment of the organization for semiconductor foundry business. We decided in July 2023 with the MOU signed with PSMC on a preparatory company for establishment of a semiconductor foundry, we have been working on the preparation in many ways. Let me explain to you what has been done by this preparatory company. The consideration of market research, product configuration, and construction site of the foundry, determination of the policy for capital structure and fundraising, establishment of the organizational structure, and also personnel system.
In that respect, we can say that we have to work on the training of large number of personnel. The first step would be to recruit staff and engineers. All these are very important, and also, in what way are we able to have a connection with academia and others? They have been working on the consideration for that. Next step was that we established JSMC Holdings as a new entity to serve as the operating body for the foundry business. SBI Holdings and PSMC formed a joint venture, JSMC, under that umbrella, we decided to have JSMC Holdings. Then, for the executive team, this is the plan. I'll be serving as the Director and Chairman, Frank will be the Vice Chairperson, Mr. Wu would be Representative Director and CEO.
Mr. [Nakano], who has been responsible for our finance, will be the Representative Director and CFO. Oda-san and Martin Chu will be the directors. This is the executive team that we have in mind. We are not only establishing foundries and that's it. Far from it, we try to promote the establishment of the semiconductor foundry ecosystem. We have been thinking about this for a while and try to work on it. When I say ecosystem, well, this is something we have been working on in the financial world. We have a foundry. The strongest foundry ever should be established in order to make sure that it is the most competitive in the world. It is important to have the supportive functions. Also we have the pre-process and also post-processes.
Many related processes will be involved in the foundries, and we have to work on that, too. It is important to have technologies, and the investment is needed here, as can be seen here, for the circuit development of the IP. Generally speaking, the product will be put into the process of the foundries, such as in the case of PSMC. Then, huge amount of investment is being made. We'd like to continue working on the investment. It can be seen. This is already agreed upon, so the money has not been put into this process, but the amount of money is already decided upon. As you know, Korea is very strong in this arena, and many semiconductor-related companies are already there. There are as many as 22 companies.
We are making investment for as many as 22 companies, and also the processes. The AI-driven, we try to leverage AI to optimize semiconductor processes. We have these companies which will be covered by our investment. As I just said, we are in the process of the preparation for the establishment of ecosystem. We have been steadily working on it. In various areas, we will have the ecosystem so that they will have a synergy effect, and they will have mutual evolution. This has been already done in the financial world, and we are quite sure that this will hold true in all the industries. This will hold true in the semiconductor industry as well.
At the same time, we will fund money, and we will raise the money, and so we will establish the fund, the size of which would be JPY 100 billion. When the success of Japan is achieved and they determine which achieved, we are considering the expansion overseas by relocating the entire ecosystem abroad. That means that we will start in Japan, we will make success, and then the entire process or entire ecosystem will be brought to other countries, where this kind of ecosystem is totally lacking. That's something we try to work on. That's the reason why we have the holding company system. We have this kind of the umbrella structure.
About the planned location for the semiconductor foundry and the reasons for its selection. We have already decided upon the location for semiconductor foundry to construct, for foundry construction. We had 31 candidates, so the construction of the semiconductor foundry, received much attention, and the highly constructive proposals were given from 31 municipalities from Hokkaido to Kyushu, and encompassing various aspects, including infrastructure development, site selection, and diverse economic conditions. We'd like to extend our sincere appreciation to all these municipalities for their effort. Many local governments are interested. In the past four years, we've been working to integrate or revitalize the local communities.
I think this is the best solution for that. The impact that it gives to various communities so large, creates income and jobs. Not only that, by making one foundry, that leads to the ecosystem, and various companies will gather there. That community will be transformed as a result of this kind of a project. This location is in Miyagi Prefecture, and it's the Second Northern Sendai Central Industrial Park. This is where we selected. We're not experts, but we asked the TSMC to look into this. We left it up to them to decide the location. From various perspectives, they considered the location.
The land has to be a certain size or larger, must be easy to use parcel, and industrial water and wastewater facilities, power supply must be available. Are there multiple substations? Are there gas supply? All those things were checked. Also, those engaged in construction, developers, construction companies, they are in short supply. They are so busy, and they say that they are too full. Are we able to get the cooperation of the construction companies? Those were all the things that were considered, and we decided on this location. Of course, in terms of infrastructure, in terms of the access, what's the access time over land, sea, and water? How about the human resource available? Are there universities? There is with a school of engineering, what's the size of the population?
Miyagi has the only ordinance-designated city in the Tohoku region, with a population of 1 million in Sendai. In various parts of Tohoku, including Miyagi Prefecture, there are multiple number of supply chains related to the semiconductors. That multiple supply chain or broad supply chain helps to conduct efficient semiconductor manufacturing and creating an ecosystem. In Miyagi Prefecture, there are companies that do etching equipment, semiconductor laser, and photography equipment manufacturers, and also material suppliers. They have various bases in this region. According to statistics from the Development Bank of Japan, a survey on planned capital spending, semiconductor-related investment in Tohoku is JPY 104.5 billion in FY 2020. It's an 83.8% increase from JPY 56.9 billion the year before, which surpasses the national average growth rate of 42.9%. Also, in terms of the future outlook, we want to start this business as quickly as possible.
We want efficient production, the most efficient production possible. Now, the design of a foundry takes quite a long time. Now, PSMC is constructing a foundry in Taiwan. Foundry P5 is expected to start in 2024, it's the most modern, the latest one. The design has been completed. If we can copy that and do it in Japan, that would be the fastest. That was the idea that the PSMC gave us, and we said, "If this is possible, this would be great." We were able to secure the land that makes that possible. It's still during the Diet session, and in terms of the subsidy, the newspapers reported JPY 140 billion, but nothing has been decided yet. Without a subsidy, I don't plan to do this project. I don't intend to do this project.
200,000 shareholders support our business, if there is no subsidy, and if it is going to negatively impact management, we are not going to do it. We must make sure that doesn't happen. A certain amount of subsidy, which is commensurate with the size of this project, if that is provided, then in Miyagi Prefecture together with PSMC, we will do this project. For a long time, PSMC has built up knowledge and IP, and we can capitalize on that. This is something that is very beneficial for Japan. I would like the government to understand that. At the diet, I want also the opposition parties to also understand, to ensure that this materializes. In terms of production plan, there are two phases, phase I and phase II.
In phase I, that will be 2027, semiconductor wafer type would be 40 nm- 55 nm. The monthly production, 1,000 wafers, in terms of 12-inch wafers. In phase II, that would be 2029, planned in 2029. In addition to the 40 nm and the 55 nm, there will be 28 nm and the Wafer-on-Wafer. Mr. Wu will explain this later. Total, 40,000 wafers. It will be a huge plant, huge foundry that produces 40,000 wafers. JSMC will contribute to the domestic production of semiconductor wafers to a quite substantial amount. There is 28 nm to 55 nm. The domestic demand for the full wafers in 2022 is JPY 710 billion. In 2031, it is expected to increase to JPY 1.1 trillion. As of 2022, 90% of these semiconductors are produced by overseas foundries.
JSMC, in full operation, at the full capacity operation, as of 2031, will be able to meet 14.5% of the domestic demand. The domestic self-sufficiency rate of these wafers will increase from 5.2%-43.7%, of which JSMC contribution will be 14.5%. Semiconductor, called the rice of industry, to be able to produce that in large volumes at a low cost, that will make a huge contribution to various manufacturing industry, is what we think. There will be OSAT to be established in Japan, that will enhance the supply chain. In Taiwan, the pre-process and the post-process are placed in the same area around these fabs, but that is not the situation in Japan. Japanese automakers, what are their wishes? They want the post-process to be located in the same area as the pre-process. That is their very understandable needs.
It says the same country, but I want to correct that to same area. Japan and Taiwan, various companies will establish these post-process operations, that will help to strengthen the resilience of the semiconductor supply chain in Japan. These kinds of semiconductors, those who use it, like automotive, they will have much better resilience. JSMC has already started the collaboration projects with OSAT factories. For the quasi-advanced process semiconductors and power semiconductors, these kinds of general-purpose products, reducing package cost is going to be important theme. We are already working on this, studying this from various angles. Also, we are considering collaboration with university-led cluster hub initiatives. We need industry-academia collaboration. The technology is advancing minute by minute, so it is very important to have such collaboration. Case two, considering the possibility of the 3D packaging OSAT.
OSAT is the post-process by a Taiwanese company expanding into the vicinity of JSMC and collaborating with them. The people who are actually producing and using in Taiwan. PSMC is going to call on various companies. I think that's what this is actually meaning. In terms of funding to build and operate a foundry, we would need about JPY 420 billion for phase I. SBI Group will put in JPY 100 billion. For phase II and onwards, of course, we don't know what will be the foreign exchange rate, but the total will be over JPY 800 billion with phase II and onwards included. Ourselves and PSMC basically will invest more than 50%. In addition to that, we will have or solicit investments from investors in Japan and abroad. Also, we will consider borrowing from bank syndicates, our main bank, Mizuho and SMBC.
We are already discussing with them. Also Shinsei Bank, which is one of our subsidiaries, we're talking with them as well. We want to have as much capital as possible, and we will also consider Development Bank of Japan as well. We want to get in the black as quickly as possible and list as quickly as possible. I think time is up, so I will end my talk right here. Thank you for listening.
Thank you very much, President Kitao. Please go back to your seat. Next, we'd like to ask Mr. Frank C. Huang, Chairman of Powerchip Group, Chairman of PSMC, to say a few words. Mr. Huang, the floor is yours.
President Kitao. Mr. Wu, Governor Murai, ladies and gentlemen. Mr. Wu, ladies and gentlemen, my name is Huang, Chairman of PSMC. Very pleased, happy to be here to announce the establishment of the JSMC. I must admire the effort and persistence of Kitao. We, together, less than one year, make this final decision. This is, to me, is impossible in Japan business society, with such quick decision. I really have to thank his effort to establish this JSMC. As we discussed before, Japan is such a big, giant industrial country. So many big companies. Japan has to have its own supply chain, especially under foundry. Without this, Japan will rely on other countries, including Taiwan, to support the industry, the chip. Now, we are moved to AI industry, 3D semiconductor technology. This is the ultimately important for Japan to move to that direction.
Why I make a decision that I had to mention our TSMC's former chairman, Morris Chang. In two occasion, he said to me and he said to public, he think Japan is the next good place for foundry. That's Morris Chang-san say. Because probably successful Kumamoto's fab. With this encouragement, I think the decision, together with SBI and PSMC to form JSMC, it's very important decision and where it has a great impact for Japanese industry. Especially, chip supply chain is so utterly very, very important. For Japan manufacturer industry, to race again, to compete the world, you need AI technology. You need to have your own chip supply chain. Without this, Japan is slightly quivering. During this COVID-19 time, the worldwide, all the automotive manufacturer is find a shortage of chip.
After this, every country begin to think they want to their own supply chain, including European country, Indian, Saudi Arabian, in the Vietnam, Thailand. Without this, you will manufacture will have a big problem. Some of my friend, Japanese auto industry, told me they don't have no idea. Without chip supply, they cannot decide how many automotive to be built next month. This is serious. I think with all this condition, I believe Japan has its own chip supply foundry. The fab that the SBI and the PSMC to build is a fab which feasible for Japanese industry. In the future, for the diameter from 55, 40, 28, and in plus 3D AI, I think it's the next phase of Japanese industry need, especially AI. Japan has a huge electric and automation and many, many industry. The world relied on Japan technology export.
Japan must have its own AI technology. Okay. This is ultimately important in this decision. Okay. Of course, TSMC has a fab that working with Sony and so on. We are different. JSMC is a Japanese company. TSMC is Taiwanese company, okay? That's make a big difference because it's going to be important to Japanese foundry supplier. Powerchip has been start for 30 years ago. We are working with Mitsubishi Denki and transfer eight-inch fab DRAM. Our COO, Martin-san, has been training by Mitsubishi Denki 30 years ago. With this 30 years, we have moved on eight-inch to 12-inch, become one of the three majors foundry company in Taiwan. Okay. Powerchip appreciate the effort of Japan industry collaboration, I feel the best way is to come to Japan again. There's a several change.
First of all, Morris Chang and I has thought, Japan, today Japan's cost structure and the industry right now can compete. The cost structure of Japan to manufacture semiconductor now is okay. It's much cheaper than United States, European, anywhere. With this cost structure, Japan now can move to supply its own chip. Secondly, I think, because no foundry. Okay. My experience, if your country has no foundry itself, you will not create chip design company because nobody will support you to manufacture. With this JSMC form, I believe the new fab, Tohoku University Science Park, will be gradually aggregate many potential designer. When I think back 30 years ago, we are very, very respect Japanese engineer design ability. Since Japanese, in this 30 years, with DRAM descent, not so much anymore on the semiconductor.
This is, I think, as I name. We want to have this come back in Japan. I believe there's a very good Japanese engineer. We should able to encourage and formulate design house in Japan and other semiconductor related industry will begin to develop. In this idea, because most important, Japan needs this because your neighbor, China, has made so much effort to try to do some semiconductor. I think Japan should do its own. This is vital important. That's why I think that Kitao-san and the government believe this is a good beginning to recover or rediscover Japan and other industry. I myself, I have a very long-term relation with Japan, start from Mitsubishi, and my parents live in Japan during a war. My mother lived in Japan 18 years. Our relations, especially myself, has a very tight relation with Japan.
My grandpa has been a congressman of Japan when Japan do China Taiwan. We come back to Japan is a familiar environment for me, and I really like to do this. Especially, I think, of all the review, Kitao-san has explained why go to Sendai, Miyagi. We are very objective together with SBI. Review all the 20 to 30 county in Japan. We find this is suitable. It's no politic. It's just suitable place. Okay. I have told Chiji this place is like Taiwan's beginning of the 30 years ago, beginning of the Taiwan handheld time, TSMC Hsinchu. With university, Tohoku University is a great technology university. With the space and the local government support, that's how Taiwan create today's industry. This, I think we can do it again and prevail in Japan. Okay.
Taiwan Semiconductor have achieved world-class leadership through the hard-working and persistent and, of course, the leadership of Morris Chang and TSMC and UMC and ourselves. I don't believe Japan cannot do the same thing. Okay. 30 years ago, we had to ask. I think then I was in a giant company, Mitsubishi Electric, to tell us or teach us, to train us how to do [Handai]. Now it's time to Japan come back to industry [Handai] again. With align with Taiwan will make Taiwan, Japan [Handai] association will be so strong, and we can compete to anybody else. This alliance is such important decision start from here. I was feel a little bit sorry about what happened to Japanese semiconductors in the past 30 years. I'm so tied to Japan. Mitsubishi Electric, Elpida, and all these things, it's time to come back.
I believe that our chip effort to transfer technologies, to collaborate with SBI, to form the JSMC is so essential. I have to admire Kitao-san, Kitao-shacho Kitao-san. Within such a short time he make a decision. He's so brave and courage. I really All my Japanese friend, nobody has as, have guts as Mr. Kitao-shacho Kitao-san. It's incredible. I must admire. We together, we have the same thought. That's why this company, JSMC, can form in such a short time. Also appreciate Murai Chiji has so enthusiastic, willing to support entire commitment of semiconductor manufacturer in their country. I was very pleased, and I was much thank you for our team, county, SBI, everybody working day and night try to achieve.
According my experience with the Japanese company and Japanese business behavior, normally this kind of decision take two or three years before they can make decision, but time is short. We cannot delay. We make a decision today. To me, other country has before we work with Japan, come to me, but they are so We decide Japan is the best place we should do it right now. As my experience 30 years in semiconductor, from the beginning of the Mitsubishi Electric, Elpida, and today, I certainly believe that this joint venture, this effort, definitely have a bright future for renew the Japanese [Handai] industry. I think it's a must. For me, Japan still the one of the biggest industry complex of the world. Without your own supply chain in semiconductor. It's a bug. It's no good. It has to do it.
All the people today attend, I must re-emphasize, JSMC, we will make it success. We saw so many upside down and change in [Handai]. Today, I beginning believe the new JSMC can success. Powerchip itself will make every effort possible to make sure we can support this new entity success. With the collaboration between us, SBI, and JSMC, I think this is a very important investment and have a bright future. Again, especially in the Tohoku area, Tohoku University, technology is very good. They are support in many area. PSMC is the only company in the world, the Japanese-style technology in foundry. TSMC is American technology. We are Japanese technology. We have a different angle. Some of we are very competitive, we are very good. I must appreciate the technology we able from Mitsubishi Bank is keep still in ourself and it move.
This time, I believe this is a great opportunity. I hope I can contribute, and our company can contribute the future of a Japanese [handle die industry. To support the Japanese industry. Automation, many things, you need AI. We will make sure Japan will be sufficient ability to produce the cost-effective AI. Powerchip is a leader in the world making an AI chip, which is high speed, low cost, affordable cost, lower power consumption. We are the only company today able to achieve such kind of goal. We will share this technology with JSMC, make sure Japanese industry can enjoy cost-effective AI chip. I understand Japanese industries very well. I understand it is imperative, it's important that Japan has automatic industry, electricity industry, and other things in Japan, you require to compete worldwide. You have to have affordable cost of AI chip.
This is going to be, as soon as the fab finish building, it can produce this kind of thing together with PSMC. We also making tremendous speed up effort. We making our new fab, it's in Taiwan, Tongluo. Fortunately, we have the same plan. We can directly transfer to a new site of the Tohoku University Science Park. We can shorten the designed fab time. All the prospect look good. I must, again, want to thanks [inaudible] Joe-san, his effort, and SBI's staff has worked with us, make it possible in such a short time. To me, it's just incredible to be a Japanese industry be so fast. It's this kind of spirit I believe we can success for JSMC. Issho. Thank you very much.
Thank you, Mr. Frank Huang. Now, we would like to have remarks from the Governor of Miyagi Prefecture, Mr. Yoshihiro Murai. Mr. Murai, please.
This is Murai, Governor of Miyagi Prefecture. As the site for the semiconductor manufacturing plant of JSMC, a new company formed by SBI Holdings and PSMC, Miyagi Prefecture has been selected. I express my wholehearted welcome and appreciation for the selection. This past July, Chairman Kitao and Chairman Frank Huang explained the establishment of domestic cooperation and the establishment of a fab in Japan. We propose the most favorable site in our prefecture. The site survey was conducted surprisingly quickly and also in great detail, and we are very pleased that our prefecture was chosen as offering the best location environment for the plant, and we're able to see this day materialize.
As you know, semiconductors are used in just about every industry and play an important role in supporting our social infrastructure. As we look ahead to the future of DX and GX, it's certain that semiconductors will become even more important, and we strongly feel the need to make a national effort to promote the semiconductor industry in Japan. As the only foundry in the world that develops both logic and memory devices, JSMC is expected to mass produce semiconductors that are in high demand, such as for automotive applications, as well as advanced semiconductors that combine logic and memory devices. Thereby, we expect that it will contribute greatly to the stabilization of semiconductor supply in Japan.
PSMC has stated that it will transfer its superior semiconductor manufacturing technology to JSMC, while the IP created by JSMC will belong to that domestic corporation, JSMC, and that it will also actively engage in the training of semiconductor-related human resources. SBI Holdings has also stated clearly that it will support the sustainable development of the semiconductor industry in Japan by providing support through the silicon cycles with the power of finance. I deeply sympathize with the ideas of both companies. In Miyagi Prefecture, there are excellent institutions led by Tohoku University, a national university, which conducts world-leading research and development of semiconductors and develops human resources. In addition, the national government is also vigorously promoting strategic and ambitious initiatives in order to survive the fierce international competition.
We believe that local governments need to work more closely with each other to improve the siting environment and to promote cooperation between industry, government, and academia. In particular, the development of human resources for semiconductors is important. In order to create an environment that is receptive not only to students and researchers from Japan and abroad, but also to people with work experience, we at the local government level will work together with the national government, universities, companies, and financial institutions to create an all-Japan approach to the development of talent. I'm confident that the siting of JSMC will serve as a catalyst for the semiconductor industry in Japan to regain its strength, solve various social issues, and create an affluent society filled with hope.
For JSMC and its effort to construct and operate its new plant, Miyagi Prefecture, together with all the municipalities, committed to make a wholehearted effort to support them. In addition to actively cooperating in the construction of the plant, securing talent, and the various licensing procedures, knowing Mr. Frank Huang is a man who cares about his employees, we will take full responsibility for ensuring that the employees from Taiwan and their families will have a comfortable and secure life here. In addition, currently, there are 17 flights a week between Taiwan and Sendai. We will work to increase the number of flights to improve the convenience.
As was mentioned and shown in the material, Sendai Airport is a 24-hour airport. You can take off during the nighttime as well. I believe in improving the welfare of our people of the prefecture through industrial and economic development. 18 years ago, when I assumed office as governor, the total domestic production of Miyagi Prefecture was JPY 8.5 trillion. I've been working hard to increase that to JPY 10 trillion. Once, in 2008, we were able to exceed JPY 10 trillion, but after that, due to the COVID, it has been lower than JPY 10 trillion. With JSMC locating here and with the expected related companies coming here, we expect that we'll be able to maintain over JPY 10 trillion, and also contribute to the development of Tohoku and Japan.
In conclusion, I'd like to express my sincere gratitude to Chairman Kitao of SBI Holdings, Chairman Frank Huang of PSMC, and President Joe Wu of JSMC for making this occasion possible, making today possible. I'd like to conclude my speech by wishing for a long-term relationship as we, as a prefecture, become a member of the team aiming for the development of domestic semiconductor industry. Thank you very much.
Thank you very much, Mr. Murai. At this point, we'd like to invite Mr. Joe Wu, Representative Director and President of PSMC Japan. Mr. Wu, please take the floor.
Good afternoon. My name is Joe Wu. I'm from JSMC. I'd like to share with you the vision of JSMC. JSMC is aiming at expanding the business centering around Japan. The most important would be 28 nano, 40, and 55, and Wafer-on-Wafer. These are the leading-edge processes. What we try to do is to develop these technologies in Japan. On top of that, supply chain and businesses, and also the human resources and IP. These are the four areas with which we are able to contribute to Japan. First, I'd like to explain to you about the supply chain. Needless to say, this is indispensable for the stable supply for Japanese semiconductors. Up until now, in Japan, the production had been up to 40 nano. If you are talking about sub-40, which is 20 nano, we have to say that there is almost no capacity for production.
JSMC would serve as a Japanese company and do our best to increase that kind of capacity. The second is business. Business is needless to say, based on the stable supply of chips, but business should be worldwide. What we try to do is to have a worldwide business. Especially important is the EV-related business, industrial machines, and also the AIs, we'd like to center our attention on these areas as well. The next point is IP. Unlike other non-Japanese companies, the IPs or intellectual properties have been owned by these non-Japanese companies. This time, we have a joint venture between SBI and the PSMC. The JSMC is a Japanese company, so that means that the IP or IP developed by JSMC is owned by JSMC. Also about the human resources.
In the last 30 years, Japan's semiconductor business was not doing well, and many of the good people could go outside of the country, or sometimes it is difficult for Japanese companies to get into this field, inviting many good people. It is important to make investment for the human resources. Next, I'd like to speak about the supply chain stability. It is very important to use the JSMC process as a basis, so that means that users can customize and optimize products by adding their own devices based on the JSMC process. This is about customizability. For example, the IDMs can work on the development, but rather than doing it all by themselves, it is possible for them to utilize our own technology, so that would be the basis for that.
That means that by utilizing JSMC's base process, they can shorten development time and reduce development costs. When I say 28, 40, and 55 nano, about the target business, the most important would be the EVs. 30 years ago, the PC was the biggest application area. In the last 10 years, smartphones were the most important one with a large volume of semiconductors. We are pinning hopes on three things. One is the EV, the second is the communications infrastructure centered around 5G and 6G, and the third is AI-related industry. These three industry segments will grow for sure, and semiconductors would be the driving factor for that. Also, at the same time, it is very important to work on the advanced technologies. In the case of the large volume of usage, we have to center on 28, 40, and 55.
JSMC will focus on these areas where the large volume is expected. As I just said, I talked about these three segments, and we'd like to focus on these areas. These are the products that we have. Microcomputers for automotives or power management ICs, or communication, connectivity-related, telecom-related, and also ISPs. This is the sensors with cameras. It is an image signal processor, and also AI-related semiconductors and combination of the above. We are planning to establish production lines for these. I want to explain to you here, this 3D stacking technology, Wafer-on-Wafer. Compared with 2D, the biggest difference is that with 2D, between logic and memory, you have long wiring and many wiring. With Wafer-on-Wafer, there is no such wiring. 2D, let's say, you have 100 to 200 wiring, but that doesn't exist within the Wafer-on-Wafer. Instead, you have about 2,000 contact pads.
You eliminate 100 wires, and you introduce 2,000 contact pads. The transfer, well, there are two benefits. Power consumption can be saved, especially memory interface power. You can save 90%, there is no input and output wire. That helps to reduce the power. You have 2,000 contacts, and speed grows by tenfold. Wafer-on-Wafer. We can do logic and memory. PSMC is the only company that can do both. The other foundries, they mainly focus on logic. They can only do logic, other foundry makers, even if they wanted to do Wafer-on-Wafer, it would be logic plus logic or memory plus memory they can do. Logic plus memory, we are the only company. That is the strength of the PSMC. Logic plus logic, memory plus memory. That is something that JSMC can also do, we can provide three choices. What would this Wafer-on-Wafer be used?
It will be used for AI, telecom, 5G, 6G, and drones. For example, drones, it can only hover for 20 minutes, but with Wafer-on-Wafer technology, that time can most likely be elongated. Also, it is a supercomputer here. Quite frankly, in Japan, there is this supercomputer project that we are cooperating on. Related to memory, part of the supercomputer, using Wafer-on-Wafer technology, we are providing cooperation. Next year, I think that there could be a new contract, and we are working hard towards that. Finally, about human resources. Within semiconductors, of course, you need funding, you need technologies, you need business. Each are important, but the most important is the talent, human resources. As I explained, past decade or so, Japanese semiconductor industry has not been successful in developing new talent. Several points about human resources.
The quickest way is to bring about 200 to 250 experienced engineers from Taiwan, bring them to Japan. Two missions, to actually go to the JSMC fab and start working there to start up the fab. They can contribute to that. The other mission they would have is to educate the young engineers here in Japan, to provide them training. Secondly, we will recruit Japanese engineers, young engineers, it will take more than two years for the plant or the fab to be started. Until that time, maybe six months, one year, these Japanese engineers, we will send to Taiwan, and they will receive training at the PSMC in Taiwan for six months, 12 months. They will come back to the newly established JSMC. The experienced people from Taiwan, and the trained Japanese engineers, they will now be ready. That is another way.
There are still large number of Japanese semiconductor engineers working outside of Japan. I have been with the company 23 years. I have Japanese friends and those who are experienced in the industry, still very young, I mean, even at my age. They're not in Japan because there was not a lot of work about the semiconductors. They're in neighboring countries now. They have a lot of experience, and they are, I think, starting to think they want to go back to Japan. This kind of talented people, I will call on them. I will talk to them so that, number three, the very experienced Japanese engineers, senior engineers, quite numerous, that we can recruit them back to Japan. Number four, we need to develop the individual human resources, but also about the ecosystem design houses and startup design houses. We are thinking of providing support to them.
As a fab, we make wafers. We have to be concerned about where the customers are. There are people who are working in IDMs, many design houses. In order to reestablish the Japanese semiconductor industry to become number one or number two in the world, for that, we need not just manufacturing, but also design, post-processing, that the whole ecosystem has to be established to strengthen your industry. We're just at the starting point. The front-end production is going to be done by the joint venture between PSMC and SBI. That's the starting point. In addition to that, Japanese universities and companies or government needs to work together and maybe establish a semiconductor academy. We would like to have that kind of organization established. Through these five measures, we are set to secure the necessary personnel.
I'm very happy that we're starting this venture, and now there's a lot of challenges going forward. There's going to be difficulties and, as I said, technology development, recruiting people, and winning the trust of customers. All of this takes time. What I want to explain here is that, as Mr. Kitao or Mr. Huang said, this JSMC, this company, well, we have the 12-inch fab at PSMC just completed. That fab, the production line there is going to be completely copied. It's going to be sort of like a mirror fab. Until JSMC starts up, it'll be two or three years, but developing new products for semiconductor, the tape-out takes at least two years.
We have to start next year as a business. From next year, concerning business, I'm going to exert my efforts. Until the new JSMC fab is started up, since we have the mirror fab in Taiwan, we can do the test run and do evaluation so that the two years later, that can be copied 100% to the Japanese fab. That will be the most speedy and most efficient. That is the mission of the JSMC. Thank you very much.