Photo/Illutration TSMC Chairman Mark Liu speaks at a news conference on June 6 in Hsinchu, southwest of Taipei. (Wang Siting)

Taiwan Semiconductor Manufacturing Co. (TSMC) is negotiating a subsidy with the Japanese government to build a second chip plant in Kyushu, possibly beside its first one, Mark Liu, the company chairman, said June 6.

However, the possible new factory, like the one currently being built in Kikuyo, Kumamoto Prefecture, will not manufacture next-generation semiconductors.

“Cutting-edge chips will not be produced in Japan as they are made in the United States,” Liu said at a news conference in Hsinchu, southwest of Taipei. “Besides, many customers think previous-generation models are in short supply.”

The Japanese government is providing a subsidy of up to 476 billion yen ($3.41 billion) for the Kikuyo project, which has been joined by Japan’s Sony Group Corp. and Denso Corp.

TSMC, the world’s largest contract chipmaker, also plans to build a plant in Germany, according to Taiwanese media.

“We are still negotiating a subsidy with the German government. We haven’t made a deal yet,” Liu said.