TSMC plans to build chip factory in Japan

Taiwan Semiconductor Manufacturing Company says it plans to build a new factory in Japan. The Japanese government is considering subsidizing the project to boost chip production capacity in the country.

TSMC made the announcement in an online news conference on Thursday. Officials at the world's largest contract chip foundry say they plan to start construction next year and begin production in 2024.

Sources say TSMC and Sony Group will team up to make a joint investment in the plant. The companies are considering building it next to the Japanese firm's factory in the southern prefecture of Kumamoto.

Chips are in short supply globally. Demand is expected to grow for various applications, such as electric cars and robots. The United States and European nations are also trying to reduce their reliance on imported semiconductors.