Taiwan Semiconductor Manufacturing Co. has officially signed an agreement to construct its second fabrication plant in Kumamoto Prefecture, Japan. This move is part of TSMC's broader strategy to diversify its manufacturing footprint amidst growing geopolitical tensions and increasing global demand for advanced semiconductors, particularly for AI and automotive applications. The new facility will be located near its first Japanese plant and will focus on producing more advanced 6-nanometer chips. With an investment of approximately NT$428 billion (US$13.9 billion), the plant is expected to commence operations by the end of 2027 and will employ around 1,700 people.