TSMC plans to begin mass production of advanced 3-nanometre chips in Kumamoto, southern Japan. This action marks a major shift in the country’s role in the global semiconductor supply chain. The project, reportedly valued at around $17 billion, reflects surging demand for high-end chips driven by the rapid expansion of artificial intelligence technologies.
Until now, TSMC has manufactured its most advanced chips exclusively in Taiwan, while its Japan operations focused on older technologies. The move places Japan among a small group of locations capable of producing cutting-edge 3-nanometre chips, which are essential for high-performance computing and AI servers. TSMC also plans to produce similar chips at its second factory in Arizona starting in 2027.
TSMC CEO emphasized that the new facility would support Japan’s economic growth and help build a foundation for the country’s AI industry. Japanese Prime Minister Sanae Takaichi highlighted the strategic importance of advanced chips for economic security. Although TSMC declined to confirm the reported investment figure, Japanese media say the government is considering additional subsidies, building on existing support for the company’s semiconductor expansion in Kyushu.
The project may alter earlier plans that focused on less advanced chip production. TSMC has indicated that final technology choices will depend on customer demand and market conditions. At the same time, Japan continues to support domestic chipmaker Rapidus, which is developing advanced chips in Hokkaido. This reflects the government viewing the two efforts as complementary rather than competitive.
Overall, the investment underscores Japan’s push to secure access to critical semiconductor technologies. A priority that has grown worldwide as chips become increasingly vital to AI, electronics, automotive, and defense industries.
Reference
Reuters. (2026, February 4). TSMC CEO flags 3-nanometre chip production in Japan, investment reported at $17 billion. Reuters. https://www.reuters.com/world/asia-pacific/tsmc-plans-3-nanometre-chip-production-japan-with-17-billion-investment-yomiuri-2026-02-04/