TSMC announces plan to build chip factory in Japan

Taiwanese chipmaker TSMC has announced it is to build a new factory in Kumamoto Prefecture, southwestern Japan, with a Sony Group firm to take a minority stake in the enterprise.

The world's largest contract chipmaker said in a statement on Tuesday that construction is scheduled to begin in 2022, and production is set to start by the end of 2024.

The firm also said initial capital spending is estimated at about 7 billion dollars and about 1,500 high-tech specialist jobs will be created.

Sony Group is to take a stake of less than 20 percent in the new undertaking.

The new foundry will be TSMC's first in Japan. The company says "strong support from the Japanese government" is expected.

TSMC Chief Executive Officer C.C. Wei said his firm is pleased at the prospect of building a new factory in Japan and bringing more Japanese talent into the global group.

Chips are in short supply globally while demand is expected to grow as such items as electric vehicles and robots become more prevalent.

The United States and European nations are trying to reduce their reliance on imported semiconductors and strengthen production in their own territories.