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Taiwan’s TSMC to Manufacture Cutting-Edge Chips in Japan, Boosting Nation’s Tech Ambitions
Taiwan Semiconductor Manufacturing Corp. (TSMC) announced Thursday it will produce advanced 3-nanometer semiconductors at its second factory in Japan’s Kumamoto Prefecture, significantly enhancing Japan’s position in the global chipmaking industry.
The world’s largest contract chip manufacturer, which supplies tech giants including Nvidia and Apple, will produce these advanced chips primarily for artificial intelligence products and smartphones at the facility currently under construction. This decision represents a major technological advancement for Japan’s semiconductor industry, as 3nm chips are among the most sophisticated in production globally.
The announcement came during a meeting between TSMC’s CEO and Chairman C.C. Wei and Japanese Prime Minister Sanae Takaichi in Tokyo, just days before Japan’s general election on Sunday. The timing provides a potential boost for Takaichi, who is seeking public approval for her economic policies.
“It is very meaningful from the perspective of Japanese economic security, and I would like the project to move forward as proposed, by all means,” Takaichi said during the meeting.
The Japanese government has identified AI, robotics, and autonomous driving as strategically important fields for the nation’s economic future—all sectors that will utilize these advanced chips. The Prime Minister’s Office emphasized the significance of the development in a statement posted on X: “There is a huge significance to have the world’s most advanced semiconductor factory in Japan from the perspective of economic security.”
TSMC’s first Kumamoto plant, which began mass production in late 2024, manufactures less advanced chips. The expansion to 3nm technology represents a substantial upgrade in Japan’s manufacturing capabilities and aligns with the global trend of nations seeking to secure domestic chip production for economic and national security reasons.
In an emailed statement, TSMC’s Wei praised Japan’s “forward-looking semiconductor policy,” suggesting it would “deliver significant benefits to the semiconductor industry.” This endorsement comes as Japan invests heavily in its domestic chipmaker Rapidus, providing substantial subsidies to help the company compete in cutting-edge semiconductor production.
The announcement is part of TSMC’s broader global expansion strategy. The company is also constructing new fabrication plants in Arizona to create a manufacturing cluster that can meet the surging demand from customers building AI-related technologies.
Despite growing concerns about a potential AI investment bubble, TSMC remains confident in the sector’s growth. Last month, Wei stated that the increasing AI demand from its customers is “real,” not speculative. This confidence is reflected in TSMC’s financial planning—the company recently announced it would increase capital spending by nearly 40% this year, raising it to between $52 billion and $56 billion for 2026, up from $40 billion last year.
The decision to manufacture 3nm chips in Japan represents a significant shift in the global semiconductor landscape. Traditionally, the most advanced chip manufacturing has been concentrated in Taiwan, with some capacity in South Korea and the United States. Japan, once a semiconductor powerhouse in the 1980s and early 1990s, has been working to reclaim its position in the industry.
Industry analysts note that this development could have far-reaching implications for global tech supply chains, particularly as nations worldwide seek to reduce dependencies on single regions for critical components. The move may also influence how other tech companies distribute their manufacturing operations across Asia, North America, and potentially Europe in the coming years.
For Japan, securing TSMC’s advanced manufacturing represents a major win in its efforts to revitalize its semiconductor industry and position itself as a key player in the AI and advanced computing era.
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8 Comments
This is an exciting development for Japan’s semiconductor industry. TSMC’s decision to produce cutting-edge 3nm chips in the country will boost its technological capabilities and economic security. It’ll be interesting to see how this impacts the broader tech landscape in the region.
Agreed. Japan has been working to strengthen its position in the global semiconductor supply chain, and this TSMC facility is a major step forward. It will likely attract more investment and innovation to the country’s tech sector.
3nm chips are incredibly advanced, and TSMC’s decision to manufacture them in Japan showcases the country’s growing technical expertise. This will help strengthen Japan’s position in the global AI and smartphone markets, where these chips are in high demand.
The decision by TSMC to produce advanced AI chips in Japan is a significant boost for the country’s ambitions to be a global tech powerhouse. This will likely spur further investment and innovation in Japan’s semiconductor and AI sectors, strengthening its position in the global tech supply chain.
It’s impressive to see TSMC, the world’s largest contract chip manufacturer, choosing Japan as the site for its latest 3nm chip production facility. This speaks to the country’s technological capabilities and the government’s efforts to attract major investments in the semiconductor industry.
Absolutely. Japan has been working hard to bolster its semiconductor industry, and this TSMC announcement is a major validation of those efforts. It will be exciting to see how this facility shapes the tech landscape in the region in the years to come.
The timing of this announcement, just ahead of Japan’s general election, is intriguing. It could provide a political boost for the current administration’s economic policies. That said, the long-term benefits for Japan’s technological prowess are likely the more significant outcome.
Good point. While the political implications are worth noting, the strategic importance of TSMC’s investment in Japan’s semiconductor capabilities is the real story here. This will pay dividends for years to come.