Taiwan Semiconductor Manufacturing Co. and Sony Group Corp. said Tuesday that they planned to build a $7 billion chip plant in Japan and expect strong support from the Japanese government.

The Taiwanese chip maker said its board approved an equity investment of up to $2.12 billion to establish a majority-owned unit in Japan. Sony said it planned to make an equity investment of about $500 million in the TSMC unit to be established in the southern Japanese prefecture of Kumamoto, or less than a 20% stake.

TSMC and Sony said construction of the plant is scheduled to start in 2022 and production is targeted to begin by the end of 2024.

TSMC and Sony said the plant is expected to create about 1,500 high-tech professional jobs, and that the initial capital expenditure is estimated to be about $7 billion.

Manufacturers globally are trying to improve access to key parts, such as semiconductors, as the Covid-19 pandemic has disrupted supply chains and caused a shortage of chips, and as U.S.-China trade tensions have increased in recent years.

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