With electronics and auto manufacturers continuing to suffer from the global chip shortage, a recent announcement by Taiwan Semiconductor Manufacturing Co. that it plans to build a plant in Japan may seem to offer a glimmer of hope for the country.

The move is also in line with the Japanese government’s strategy of reinvigorating the country’s semiconductor industry, as it aims to enhance the nation’s economic security by enticing foreign chip producers into developing production bases in the country.

“We welcome the TSMC’s announcement to invest in a plant in Japan. ... (Building a cutting-edge fabrication facility) will create jobs in the local area and help stabilize supply chains,” said Yohei Ogino, who heads the semiconductor strategy office at the economy ministry, during a symposium late last month.