Representatives of Taiwanese chipmaker and prominent Apple supplier TSMC have announced plans to invest in more production facilities in Japan, reported by the Financial Times in a paywalled article.

Seven prominent semiconductor manufacturers, including Samsung, Intel, and TSMC, have outlined their strategies to expand manufacturing operations in Japan. This move comes as Western allies intensify their plans to restructure the global chip supply chain by moving away from China amid escalating political tensions. By bolstering their presence in Japan, these chipmakers aim to mitigate supply chain risks and reinforce collaborations to meet the growing demand for chips in various industries.

The announcement coincides with Japan’s preparations to host the G7 summit, during which discussions on economic security are expected to take center stage. Semiconductors, in particular, have become a critical focal point for the US and its allies as they prioritize measures to safeguard their technological interests and ensure a secure supply of these essential components.

TSMC, the largest contract chipmaker globally and assembler of Apple’s cutting-edge A-series and M-series chips, has indicated its openness to invest further in Japan. The Taiwanese manufacturer recently agreed to construct a new manufacturing facility in the southwestern region of Kumamoto and would like to enact more facilities, adds the article.

Yasutoshi Nishimura, Japan’s minister of economy, trade and industry, has announced that Japan intends to utilize the ¥1.3 trillion ($12 billion) allocated in the country’s supplementary budget from last year as subsidies for the commitments made by foreign chipmakers. “We reconfirmed the strong potential for Japan’s semiconductor industry,” stated Nishimura following meetings with chipmakers.