TOKYO—Taiwan Semiconductor Manufacturing Co. is considering expanding its production capacity in Japan, people familiar with the matter said, in what would be a move by the world’s largest contract chip maker to reduce geopolitical risk.
The Japanese government has signaled that it would like TSMC
TSM,
to expand in the country beyond a factory already under construction, but no decision has been made yet and TSMC is studying the feasibility, these people said.
The Taiwanese company, which makes chips for a host of major electronics products including those of Apple Inc., is building its first chip-manufacturing plant in Japan, located on the southern island of Kyushu. The multibillion-dollar plant is subsidized by the Japanese government.
