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Semiconductors

Japan's wooing of TSMC pays off with $7bn chip plant

Tokyo had an inside track with Taiwan semiconductor giant in joint R&D deal

TSMC Chairman Mark Liu, right, and Makoto Gonokami, then the University of Tokyo's president, seal a collaborative agreement in 2019. (Photo by Kensaku Ihara)

TOKYO -- A new Japanese chip plant in the works by Taiwan Semiconductor Manufacturing Co. is the product of a long-standing relationship between the world's largest foundry and a country seeking to regain its clout in the global semiconductor industry.

TSMC looks to build the $7 billion plant in western Japan's Kumamoto Prefecture in collaboration with Sony Group and other partners. The Taiwanese contract manufacturer's ongoing collaboration with Japan led it to choose the country despite overtures from several others.

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