TSMC to build 2nd chip plant near 1st factory in Japan's Kumamoto

KUMAMOTO, Japan (Kyodo) -- Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, will build a second plant in the same town as its first in Kumamoto prefecture, a lawmaker said Sunday.

TSMC is likely to make a formal announcement on the location of its second factory in February, said farm minister Tetsushi Sakamoto, the House of Representatives lawmaker representing the Kumamoto No. 3 constituency including the town of Kikuyo.

The chipmaker is expected to invest around 2 trillion yen ($13.5 billion) in the new plant, raising hopes that it will boost the economy in the southwestern Japanese prefecture. However, it could lead to complaints about groundwater pollution and traffic jams, locals said.

TSMC's first plant, a wafer factory, cost $8.6 billion, with mass production scheduled to begin later this year.