KIKUYO: Taiwan Semiconductor Manufacturing Co. will build its second factory in Japan in the southwestern Japan town of Kikuyo, its CEO said Saturday.

The plan was announced by TSMC CEO C. C. Wei at a meeting held with Japanese Prime Minister Fumio Kishida, who inspected the company’s first plant in Japan built in Kikuyo, Kumamoto Prefecture, on the day.

Kishida said that the world’s largest contract manufacturer of semiconductor chips operating plants in Kumamoto will have a huge ripple effect on the entire country of Japan.

“It’s an important project for a wide range of industries, including that of electric vehicles,” the prime minister added, expressing his expectations for TSMC’s operations in Japan.

Wei said that the Japanese government’s forward-thinking investment policy regarding the semiconductor industry will bring an innovative era for the digital economy.

Operations at TSMC’s first plant in Japan are scheduled to be launched this year. The company plans to start the construction of the second plant by the end of this year, with a goal to begin operations by the end of 2027.

As the Japanese government is aiming to boost domestic production of semiconductors, Kishida’s visit to the Kikuyo plant was made in hopes to promote such a policy. The government has already decided to provide financial support worth a total of 1.2 trillion yen to TSMC.

Kikuyo Mayor Takatoshi Yoshimoto said in a statement that he sincerely welcomes the CEO’s announcement. He said that he hopes TSMC’s operations in Japan will contribute to ensuring the country’s economic security.

JIJI Press