The world's largest contract computer chipmaker, Taiwan Semiconductor Manufacturing Company, has officially announced that it will build its second plant in Japan.

The company said on Tuesday the second plant will be in Japan's southwestern prefecture of Kumamoto, where its first plant is located. Construction of the new plant will start by the end of this year so it can begin operating by the end of 2027.

Toyota Motor will newly invest in TSMC's majority-owned manufacturing subsidiary, along with Sony Semiconductor Solutions and Japanese auto parts maker Denso. Toyota will hold an equity stake of about 2 percent.

Together with its first plant in Japan, which is expected to open later this month, the overall investment in the subsidiary will exceed 20 billion dollars.

TSMC said the two new plants combined will create jobs for more than 3,400 highly-skilled workers.

It added that the plants will produce semiconductors for a wide variety of applications, including those for automobiles, and chips ranging from 40 to 6 nanometers.