Asian Tech Press (Oct 20) -- TSMC is considering expanding its production capacity in Japan, sources said.

The Japanese government wants TSMC, the world's largest contract chipmaker, to expand beyond the local plant it has already started building, some sources said.

TSMC is currently studying the feasibility of expanding production capacity at its Japan plant and has not yet made an initial decision.

Another source familiar with the matter said TSMC will consider producing more advanced chips Japan's southwestern region of Kyushu.

The Taiwanese chipmaker is building a chip factory in Kumamoto Prefecture's Kikuyo town, in the heart of Kyushu, which costs billions of dollars and will go into operation in December 2024.

TSMC and his partner Sony Semiconductor Solutions Corp. originally planned to produce chips for cars and sensors, etc. using 22nm and 28nm mature processes at the plant.

However, according to people familiar with the matter, if TSMC intends to expand on the scale of the existing plant, then the company will produce more advanced chips.

In response, TSMC said Thursday that the construction of the Japanese plant is currently proceeding according to the original plan and is progressing well.

In addition, TSMC Chairman Mark Liu pointed out on Wednesday that rising geopolitical risks have brought "more serious" challenges to the chip industry.