The head of the world’s largest contract semiconductor maker says the firm is considering plans to build a third chip plant in Japan.

C. C. Wei, the chief executive officer of Taiwan Semiconductor Manufacturing Company, told reporters the firm is studying further expansion in the country.

He made the comments after TSMC’s shareholder’s meeting on Tuesday. At a board meeting later the same day, Wei was also appointed chairman of TSMC.

Wei says TSMC has been asked by local Japanese authorities to construct a third plant, adding that this will also require consent from local residents.

He says TSMC’s current focus is ensuring the smooth operation of its first and second plants in the southwestern prefecture of Kumamoto.

This includes securing sufficient water supplies and returning benefits to the local community.

TSMC opened its first plant in Japan in February and has announced plans to build a second facility.

Japan’s government has offered as much as 1.2 trillion yen, or 7.7 billion dollars, in subsidies to the chipmaker.