Several countries including Japan, China, Canada and India are slated to collaborate with the United Stated in the project.
The thirty Meter Telescope is going to be a reflecting one and will be built atop a 4,000 meter mountain, Hawaii's Mauna Kea volcano.
A lens company in Utsunomiya City, north of Tokyo, is making hexagonal mirrors measuring 70 centimeters on each side. 500 of the mirrors will be put together to create the telescope's 30 meter diameter mirror.
Japan has also shared one-quarter of the construction cost, or about 375 million dollars.
The telescope would be able to observe planets that orbit stars other than the sun and provide the opportunity for astronomers to watch new planets and stars being formed.
It should also help scientists see some 13 billion light years away for a glimpse into the early years of the universe.
Astronomers from around the world are to take part in a ground-breaking ceremony at the mountain-top site on October 7.
It is estimated the construction project will be completed in 2021.