TAIPEI (Taiwan News) — The governor of the Japanese city of Kumamoto, Takashi Kimura, announced Friday that Taiwan Semiconductor Manufacturing Company’s (TSMC) Kumamoto plant has begun mass production, according to Nikkei Asia.

The fab produces logic chips using 12 to 28nm processes for applications in vehicles and image sensors for companies such as Sony and Denso, Kyodo News reported.

TSMC plans to begin construction of a second fab in Kumamoto in the first quarter of 2025 and bring it online by the end of 2027. The two facilities are projected to have a combined capacity of over 100,000 300mm wafers per month.

The Japanese government has committed up to 1.2 trillion yen (NT$249 billion) in subsidies to support TSMC. It also plans to allocate more than 10 trillion yen for semiconductors and AI development by 2030.

A senior official from the Ministry of Economy, Trade, and Industry expressed relief over the news, stating, “We want steady domestic production for the sake of economic security.”

The ministry added that it expects Kumamoto’s plant to attract other foreign companies to Japan.