A senior Japanese lawmaker claimed on Friday that Taiwan Semiconductor Producing Co, the world’s major agreement chip maker, is thinking about setting up a second plant in Japan in addition to an $8.6 billion dollar facility now under development.

Yoshihiro Seki, secretary general of a ruling social gathering lawmakers’ team on chip field tactic, also urged that Japan’s government, which has pledged to give up to 476 billion yen ($3.6 billion) in subsidies for the first TSMC plant, deliver a favourable ecosystem for financial commitment.

“I believe that TSMC is searching into further investments in Japan. We have to have to develop an atmosphere that would make them believe they want to do advanced assignments with us,” Seki explained to Reuters in an job interview.

TSMC mentioned in an emailed statement that it did not rule out any chance for Japan but there have been no concrete designs at the minute.

The Taiwanese enterprise is making a chip plant in southern Japan, with Sony Group Corp and automobile sections maker Denso Corp each and every taking a minority stake. Generation is owing to start in late 2024.

TSMC is also investing $40 billion in a U.S. chipmaking plant in Arizona, and according to the Economic Occasions is in highly developed talks with suppliers about perhaps placing up its first European plant, as it diversifies its generation foundation and addresses world-wide demand for semiconductors.

Seki’s team in Japan’s Liberal Democratic Social gathering is advocating for Japan to improve its semiconductor field, which has fallen to much less than a 10% share of the international sector by revenue from far more than 50 % in the late 1980s.

“Technological innovation is fierce in the semiconductor market,” Seki claimed.

“We are not able to be profitable except if the public and personal sectors act as 1 unified physique.”

In a plan speech in October, Primary Minister Fumio Kishida positioned semiconductors as pivotal to Japan’s financial stability and pledged to funnel general public and non-public investments into the business.