TSMC Plans Advanced 3nm Chip Production in Japan with $17 Billion Investment
Taiwan Semiconductor Manufacturing Co. (TSMC) has announced plans to establish advanced 3-nanometer (3nm) chip production at its second manufacturing facility in Kumamoto, southern Japan. This initiative, reportedly involving an investment of approximately $17 billion (Â¥2.6 trillion), is aimed at addressing the increasing global demand for high-performance chips crucial for artificial intelligence (AI) applications.
TSMC, the world's largest contract chipmaker, currently conducts its most advanced chip production in Taiwan. The company's decision to implement 3nm process technology in Japan represents a significant upgrade from earlier plans for its second Japanese fab, which had initially focused on less advanced technologies such as 7-nanometer or 6-12 nanometer chipmaking.
Production & Investment Details
Construction for TSMC's second manufacturing plant in Kumamoto has already commenced. The facility is expected to utilize 3nm process technology to meet the strong demand driven by AI. Local media, including the Yomiuri, have reported the total investment in the southern Japanese facility to be around $17 billion (Â¥2.6 trillion). The specific technologies to be deployed and the production schedules will be determined based on customer requirements and prevailing market conditions.
Strategic Context & Government Support
The expansion into 3nm chip production in Japan occurs amidst a global increase in demand for advanced semiconductors, particularly for AI servers and high-performance computing. TSMC CEO C.C. Wei, following a meeting with Japan's Prime Minister Sanae Takaichi, stated that the new facility is anticipated to contribute to local economic growth and support the development of Japan's AI industry.
Prime Minister Takaichi highlighted the importance of 3nm chips for economic security.
The Japanese government has previously provided subsidies for TSMC's existing facility in Kyushu and is reportedly considering additional support for this new investment plan. Japan is also significantly subsidizing Rapidus, a domestic foundry venture on the northern island of Hokkaido, which aims to produce cutting-edge chips. Government sources reportedly believe that the chips produced by TSMC and Rapidus will serve distinct purposes and avoid direct competition.
TSMC also plans to begin producing 3nm chips at its second factory in Arizona by 2027, as part of its broader strategy for advanced chip production diversification.