- TSMC plans 3 nanometre chip production in Japan with reported investment of seventeen billion dollars.
- The project is expected at Kumamoto facility supporting advanced AI and high performance computing demand.
- Japan may offer subsidies as TSMC expands global manufacturing footprint beyond Taiwan strategically.
The world’s largest contract chipmaker Taiwan Semiconductor Manufacturing Company (TSMC) plans to establish a new manufacturing facility in Japan for its 3-nanometre semiconductor production operations which will serve as its global manufacturing expansion initiative.
TSMC CEO C.C. Wei announced the decision to Japanese officials which marked the company first time to transfer its advanced manufacturing capabilities to locations outside Taiwan.
Local Japanese media have reported that the investment for this project could reach about $17 billion although TSMC has not formally confirmed the figure.
The new 3 nanometer production facility will operate from TSMC's second manufacturing site which exists in the Kumamoto area of southern Japan's Kyushu region.
The facility originally planned to manufacture 6 to 12 nanometer chips which represent less advanced technology but TSMC and Japanese officials currently negotiate about upgrading the facility to produce next-generation systems.
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The organization implemented this decision because worldwide demand for advanced chips has increased especially for artificial intelligence and high-performance computing and data-intensive applications which require 3 nanometer technologies.
Japan has been actively promoting semiconductor manufacturing and economic security through its financial support of TSMC expansion projects and its backing of domestic semiconductor initiatives which include Rapidus.
The government may offer additional incentives for the 3 nm expansion because it views this expansion as essential for enhancing the country's position within the international semiconductor industry. TSMC is currently developing its second advanced chip production facility in Arizona USA which will start manufacturing operations in 2027.
This facility development demonstrates TSMC's strategic approach to spread production across essential regions which helps them maintain supply chain resilience while satisfying increasing market requirements.
If implemented, the Kumamoto 3nm project would be the first step in making Japan turn into a hub for production of cutting-edge semiconductor technology and taking it beyond its already-established strength in the fields of chip material and equipment, as opposed to hands-on fabrication.