Taiwan Semiconductor Manufacturing Co. said Tuesday that it will build a research and development center in Japan as demand for advanced semiconductor materials has been increasing amid the coronavirus pandemic.

In a statement issued after a board meeting, TSMC, the world's largest contract chipmaker, said it will invest 18.6 billion yen ($186 million) and set up a wholly owned company in Tsukuba, Ibaraki Prefecture, near Tokyo, to expand its research and development of three-dimensional integrated circuit materials.

TSMC has moved aggressively into high-end IC packaging and testing services to provide one-stop shopping services for clients who buy chips and require advanced 3D IC packaging and testing technology.

It has become a hotly sought-after supplier of advanced semiconductor equipment around the world amid the pandemic.

In November last year, TSMC's board of directors approved a plan to invest $3.5 billion in a wholly owned foundry in the U.S. state of Arizona in a move backed by Taiwan's government.

Last month, Japan asked Taiwan to beef up production of semiconductors amid a serious global shortage that has affected businesses such as automakers, forcing Honda Motor Co., Subaru Corp., Toyota Motor Corp. and Nissan Motor Co. to cut or halt output this year.

The United States and Germany have also asked for Taiwan's cooperation to beef up semiconductor production in response to supply disruptions.

Economic Minister Wang Mei-hua said last month that after talking to four of Taiwan's largest chipmakers, they all agreed to try to ease the shortage.

==Kyodo

© Kyodo News International, Inc., source Newswire