Japan’s Denso Corp., the world’s second-biggest automotive parts supplier by sales, is joining a project led by Taiwan Semiconductor Manufacturing Co. to build its first chip plant in Japan with Sony Group Corp.

The Toyota group company will invest ¥40 billion ($350 million) in a TSMC-Sony joint venture set up for the plant in Kumamoto Prefecture, it said in a statement Tuesday. Kumamoto Nichinichi Shimbun daily reported on the funding earlier, saying that Denso will be a major customer for the new plant.

A lack of semiconductor and parts shortages have caused output delays for consumer electronics to automobiles across the globe. Shoppers looking to buy new cars have been forced to wait for weeks or months as automakers struggle to produce vehicles, and the price of used cars have surged. The shortage is even threatening automakers’ plans to push electric cars.