TAIPEI (Taiwan News) — Semiconductor packaging company Advanced Semiconductor Engineering (ASE) is considering establishing a new plant in Kyushu, Japan.

ASE signed a provisional agreement with Kitakyushu City Government to acquire approximately 16 hectares of land at Kitakyushu Science and Research Park in Wakamatsu Ward, per Mainichi. The area is home to universities, research institutions, and companies, with the purchase estimated at 3.4 billion yen (NT$744 million), per CNA on Thursday (Aug. 1).

A Kitakyushu City Government representative said, “If the company expands here, it will accelerate the construction of ‘Silicon City Kitakyushu.’ We will work toward meeting their needs for a formal agreement.”

According to the city, ASE will decide on its final location based on the availability of national subsidies and other considerations.

ASE’s wholly-owned Japanese subsidiary was established in June 2004, with its headquarters and factory located in Takahata, Yamagata Prefecture.