TAIPEI (Taiwan News) — Work on Taiwan Semiconductor Manufacturing Co.’s (TSMC) chip fab in Kaohsiung City will start in June, the same time as the launch of Nanzih Industrial Park, the city’s government confirmed Saturday (April 30).

The world’s largest contract chip manufacturer plans to produce 7 nanometer and 28 nm chips on the site of a former CPC Corp. Taiwan naphtha cracker. Kaohsiung Mayor Chen Chi-mai (陳其邁) announced Saturday the plan for the new industrial center in Nanzih District had been approved, paving the way for construction work to start in June, CNA reported.

TSMC’s arrival symbolizes the emergence of a “semiconductor corridor” ready to upgrade Kaohsiung’s manufacturing sector, the mayor said.

He predicted the project would help the petrochemicals sector link up with circular technology and high-value materials and semiconductors. The result would be more jobs and higher-quality research and development, assisting the transformation of the local economy, Chen said.

The city plans to help TSMC acquire its construction license in May, and construction of roads, parks, public installations, and the TSMC fab could start in June, according to officials. They said the company should be able to start producing semiconductors in July 2023, with more electronics firms moving into the park over the next five years to create 45,000 jobs.