Taiwan’s Powerchip Semiconductor Manufacturing Corp. plans to build an ¥800 billion ($5.3 billion) factory in northeast Japan with financing from investment group SBI Holdings Inc. and the Japanese government, the latest boost to the country’s bid to expand its chip manufacturing base.

The factory will require an initial investment of ¥420 billion, of which Powerchip and SBI will pay for more than half, the companies said. The rest will come from investors, bank loans and government subsidies, they said.