It is far behind TSMC's most advanced 5-nm technology, which is currently used in its domestic plants, mostly for smartphone and computer processors. The factory will churn out a wide range of chips, mainly image signal processors to microcontrollers, using so-called 22- and 28-nm production technology. The cost is estimated at 1 trillion yen ($8.8 billion), with the Japanese government expected to offer multiyear support for the project. The new plant will be located in Kumamoto, in western Japan, on land near a chip factory owned by Sony, TSMC's biggest Japanese client, Nikkei Asia reported earlier. The Japan plant is not included in the $100 billion plan. The company is also considering building a chip plant in Germany. In June it broke ground on a plant in Arizona, its most advanced facility outside of Taiwan. TSMC has responded by earmarking $100 billion for overseas expansion for the three years through 2023. singled out the tech industry's heavy reliance on Taiwan as a potential risk to the global supply chain. Rising tensions between Taiwan and China, which views the democratically controlled island as part of its territory, are another contributing factor. Such geopolitical pressure has intensified due to COVID-19 disruptions and the unprecedented chip shortage that is hammering the auto industry. The investment, however, is also part of a broader global push by the chipmaker as governments around the world call for semiconductor production to be brought on shore for economic and national security reasons. Primarily to serve Sony and other Japanese clients.