A senior Japanese lawmaker said on Friday that Taiwan Semiconductor Manufacturing Co., the world's largest contract chipmaker, is considering building a second plant in Japan in addition to an $8.6 billion dollar facility now under construction.

Yoshihiro Seki, secretary general of a Liberal Democratic Party group on chip industry strategy, also urged the government, which has pledged to provide up to 476 billion yen ($3.6 billion) in subsidies for the first TSMC plant, to provide a favorable environment for investment.

"I believe TSMC is looking into further investments in Japan. We need to create an environment that would make them think they want to do advanced projects with us," Seki said in an interview.