The world's biggest chip maker TSMC has formally opened its first fab here in Japan in Kumamoto Prefecture.

It's now become the country's most advanced chip making facility and is set to give a major boost to Japan's tech industry.

Tokyo has been spending billions of dollars trying to revive chip production at home, and it also gave considerable subsidies here to the Taiwanese company.

Now the fab uses tsmc's local subsidiary name, JASM, which includes local tech giants like Sony and Denso.

And certainly, the sheer scale and significance of JASM is clear.

Here at the opening ceremony, Japan's Prime Minister Kishida Fumiyo sent in a video message, saying that he anticipates more bilateral trade between Japan and Taiwan thanks to JASM.

Meanwhile, TSMC founder Morris Chang and chairman Mark Liu thanked Japan for supporting their business here.

And we will work to implement green manufacturing, green semiconductor manufacturing, and we will execute effective water recycling and commit to conserving more groundwater than the amount used by our fabs.

TSMC's arrival has transformed this area which as you can see, even from the neighborhood of the fab is mostly made up of farm land.

Now, as many as 750 Taiwanese people have already moved here to the Kumamoto area and that's just the start.

TSMC is set to build a second fab here later this year.

Now it's already impacted things like prices and traffic congestion.

Some people here are nervous about the speed of growth.

Earlier this week, I spoke to the owner of a pig farm just a couple of minutes away from the TSMC site.

And she says that she's worried that new neighbors may be not used to things like the noise and smell of her pigs.

But she did say that she and other farmers are aware that they need to adapt, given that supporting chips is a matter of it's a national policy.

And so she is eager to find ways to work with TSMC to find ways that Kumamoto's existing industries can thrive alongside advanced chips.

Joseph Wu and Joyce Tseng in Kikuyo, Japan, for TaiwanPlus.