This May 10, 2007 file picture shows a logo of the TSMC. (AFP PHOTO / SAM YEH)

The Japanese government is considering having Taiwan Semiconductor Manufacturing Co ally with a local maker or research institution as part of plan to boost its chip industry with foreign partnership, the Yomiuri newspaper reported Sunday, without saying where it got the information. 

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Under the plan, the government could offer funding support totaling several 100 billion yen provided the overseas maker initiated a joint development project with local partnerships, the report said, potentially having factories built in Japan. 

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Through the partnership, the government aims to secure the state-of-the-art technology to meet the increasing needs to have its own production capacity for sensitive products that could affect its national security, according to the report.