TAIPEI (Taiwan News) — Taiwan Semiconductor Manufacturing Co. (TSMC) is reportedly planning a second facility in Japan that will produce more advanced 5 and 10 nm chips.

The Nikkan Kogyo reported last Friday (Feb. 24) that the new fab will be completed in the second half of the decade, according to Reuters. TSMC’s second Japanese plant will reportedly cost more than US$7.4 billion (NT$227 billion), according to Nikkan Kogyo.

Reuters said that when TSMC was asked about the report, it referred to CEO C.C. Wei’s (魏哲家) comments from its quarterly earnings call in January where he said the company was considering a second fab in Japan.

TSMC is currently building its first Japanese fab in Kumamoto Prefecture, which is expected to be ready for commercial production by December 2024. The fab will have two production lines, one that produces 12 and 16 nm chips, and one that makes 22 and 28 nm silicon.

The facility will have a monthly capacity of 55,000 12-inch wafers. The Kumamoto project is expected to cost around US$8.6 billion, with Japan’s Ministry of Economy, Trade and Industry providing the Taiwanese chipmaker with a US$3.5 billion subsidy.