Japan’s bright outlook
TSMC is planning its largest-ever investment in Japan, aiming to produce cutting-edge 3-nanometer chips in Kumamoto. The US$17 billion project would make Japan TSMC’s second global base for its most advanced semiconductor technology.
🔄 Pivot to Japan: TSMC is revising its original plan for the second Kumamoto fab. Instead of producing 6–12nm chips under a US$12.2 billion plan, the facility will now manufacture the latest 3nm generation.
The details
TSMC is shifting cutting-edge production capacity from Taiwan to Japan. The 3nm node is considered a key enabling technology for AI chips, high-end smartphones, and supercomputers.
Timing: Japan is already discussing additional subsidies for the new investment. The government has heavily supported TSMC’s Kyushu expansion from the start.
The US$17 billion plan exceeds TSMC’s previous Japan roadmap by around 40%. In parallel, Tokyo is pouring billions into domestic foundry challenger Rapidus in Hokkaido.
No Competition, Says Tokyo: Japan’s government views TSMC’s 3nm chips and Rapidus’ planned 2nm production as complementary, not competing—serving different applications and customer segments.
The investment plan
Total investment: ~US$22.5 billion so far across two fabs
Government subsidies: up to ¥1.2 trillion (≈ US$7.9 billion)
The addition of 3nm equipment is expected to push total investment even higher
The fabs are operated via TSMC subsidiary Japan Advanced Semiconductor Manufacturing, with Sony, Denso, and Toyota as minority shareholders.
Japan is rapidly building a full semiconductor ecosystem:
Rapidus targets 2nm mass production from 2027
Micron is building an AI memory plant in Hiroshima
Foxconn will manufacture AI servers for data centers in Japan
👉 Full story: Business Times, Nikkei
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