According to Nikkei reports, TSMC is planning to build a wafer foundry in Japan, which is expected to start production in 2023 at the earliest.

The report pointed out that TSMC’s board of directors is expected to decide on the investment plan this quarter, and the construction of a new fab in Kumamoto, Kyushu, western Japan, will be carried out in two phases.

Once both stages are in production, the new fab will be able to use 28-nanometer technology to produce approximately 40,000 wafers per month for multiple types of chip foundry, including image processors and microcontroller units for automotive applications and consumer electronics.

The report revealed that the fab is expected to be mainly used for foundry image sensors for Sony, TSMC's largest Japanese customer.