TSMC announces plans to build first chip plant in Japan

TAIPEI -- Taiwan Semiconductor Manufacturing Co., the world's biggest contract chipmaker, on Thursday announced it will build its first-ever chip plant in Japan, answering Tokyo's call to strengthen the local semiconductor supply chain to cope with an unprecedented global crunch in key components.

TSMC CEO C.C. Wei told investors that the company has received support from both its customers and the Japanese government to proceed with the investment, which is subject to its board of directors' approval. Wei said the plant will focus on 22-nanometer and 28-nanometer specialty technology that can be applied to many chip types, from image sensors to microcontrollers.