TAIPEI (Taiwan News) – Taiwan Semiconductor Manufacturing Co. has concluded an agreement with the local government in Japan’s Kumamoto Prefecture to build a second fab, reports said Friday.

The new factory will concentrate on 6-nanometer chips, using more advanced technology than the chips produced at its first Japanese fab next door. According to the contract with the government of Kikuyo, the new fab will be ready to start operations in December 2027, per CNA.

A precise date for the launch of mass production has not been determined yet, with officials mentioning customer demand and market conditions as factors to be considered.

Both plants are operated by TSMC’s joint venture, Japan Advanced Semiconductor Manufacturing. The company is investing NT$428 billion (US$13.9 billion) to produce semiconductors for self-driving cars and AI systems at the new fab, according to Nikkei. The plant will occupy 69,000 square meters and employ 1,700 people, about the same as the first fab.