TSMC eyes advanced chip production in Japan’s Kumamoto

The chief executive of Taiwan Semiconductor Manufacturing Co. (TSMC) on Thursday informed Japanese Prime Minister Sanae Takaichi of the company’s plan to mass-produce advanced semiconductors using 3-nanometer technology in Kumamoto Prefecture, marking a first for Japan.

Takaichi welcomed the plan—an upgrade from TSMC’s initial proposal to use 6-nanometer technology—telling CEO C.C. Wei at her Tokyo office, “It is very encouraging. I would like you to proceed as you have proposed,” News.Az reports, citing Kyodo.

She also said the government would “closely discuss and cooperate” with the company.

The Japanese government views the expansion of domestic semiconductor production as vital to economic security and is also supporting local chip venture Rapidus Corp., which aims to begin mass production of 2-nanometer chips in the second half of 2027.

Wei said the 3-nanometer chips would be produced at TSMC’s second plant in Kumamoto Prefecture in southwestern Japan, which is currently under construction.

“The 3-nanometer technology today is the most advanced process used by AI and smartphone products,” Wei said at the start of the meeting, which was open to the media, referring to artificial intelligence. He added that he believes the factory “will further contribute to the local economic growth and most importantly, form a foundation for Japan’s AI business.”

Semiconductors made with 3-nanometer technology offer higher processing performance and improved energy efficiency, and can also be used in applications such as self-driving vehicles. A nanometer is one-billionth of a meter.

TSMC’s first plant in Kumamoto began mass production in December 2024, manufacturing chips using 12- to 28-nanometer technology.

Later in the day, Wei met with Economy, Trade and Industry Minister Ryosei Akazawa, expressing appreciation for the Japanese government’s support. He said the first Kumamoto plant had been “realized and successful” thanks to state assistance.

Before the planned upgrade at TSMC’s second Kumamoto facility, total investment in the factory was expected to reach $13.9 billion, with the Japanese government having decided to provide subsidies of up to 732 billion yen ($4.7 billion).

News.Az 

By Nijat Babayev