Taiwan Semiconductor Manufacturing Co announced plans in 2021 to build a €6.4 billion chip plant in Kumamoto in southern Japan's Kyushu.

In a statement, TSMC, the world's largest contract chipmaker, said its central unit, Japan Advanced Semiconductor Manufacturing in Kumamoto, would build a second fab to keep up with growing customer demand.

TSMC said the second fab will start building by the end of this year. With both plants, the site is expected to produce more than 100,000 12-inch wafers monthly for car, industrial, consumer, and high-tech applications. However, the output plan may vary depending on customer demand.

TSMC's expansion in Kyushu is vital to the Japanese government's efforts to restore the country's position as a top chip-making centre and ensure a steady supply of chips amid trade wars between the United States and China.

The decision to build a second fab is a pat on the back by TSMC for Japan, where the building of the first fab has gone smoothly and which it sees as a source of diligent staff with a government that is easy to deal with. Just so long as no one mentions the war.