This was reported by Kyodo, according to Ukrinform’s report.

The facility, built in the city of Kikuyo in southwestern Kumamoto Prefecture, plans to mass produce cutting-edge semiconductors with advanced technologies, including 12-nanometer chips used in automobiles and industrial equipment. The business is expected to reach full capacity in October-December this year.

The $8.6 billion factory is managed by TSMC’s local subsidiary, Japan Advanced Semiconductor Manufacturing (JASM); Minority shares here belong to Sony Group, one of the world’s largest manufacturers of electronics and high-tech products, and the Japanese engineering company Denso.

The Japanese government provided approximately 476 billion yen ($3.2 billion) in subsidies for new production.

Construction of the chipmaker’s new facility is part of the Japanese government’s efforts to revamp the country’s once-strong chipmaking sector and strengthen supply chains amid rising global demand for semiconductors.

In the 1980s, Japanese chip companies occupied more than 50% of the world market but were gradually losing their competitiveness.

Taiwan’s TSMC, which is also building factories in Arizona in the United States and Dresden in Germany, is diversifying its production facilities because of risks related to tensions between Taiwan and China, which views the democratically governed island as a rebel province it should bring back. It is under Beijing’s control.

Earlier this month, semiconductor giant TSMC announced the construction of a second Japanese facility in Kumamoto Prefecture, bringing its total investment in Japanese subsidiary JASM to more than $20 billion.

As reported by Ukrinform, South Korean company Samsung Electronics sold all its shares in the Dutch company ASML Holding NV, a leader in the chip production equipment market.