TSMC to make advanced 3nm chips in Japan

Taipei, Feb. 5 (CNA) Taiwan Semiconductor Manufacturing Co. (TSMC) will produce 3 nanometer chips at its second, still-under-construction plant in Kumamoto, Japan, the company announced Thursday.

In a meeting with Japanese Prime Minister Sanae Takaichi, TSMC CEO C.C. Wei (魏哲家) said the company was planning to produce the 3nm chips at the facility in response to growing AI demand, TSMC said in a press release.

According to Japanese news reports, Takaichi called the news "thrilling" and said that her government is willing to provide financial support to see the plan through to fruition.

"The world's most advanced chips currently use the 3nm technology, which has applications in AI robots and autonomous vehicles," Takaichi said, according to the reports. "From an economic security standpoint, this is very meaningful."

TSMC began mass production at its first plant in Kumamoto in late 2024, with backing from companies including Sony and Toyota.

Its second fab, which is still under construction, was originally to be focused on manufacturing 6- to 12-nm chips, significantly less advanced than those announced Thursday.

The facility is scheduled to come online in late 2027.

Trend Force, a Taiwan-based global market intelligence firm, said the move would allow TSMC to capitalize on AI-related opportunities while shifting away from flagging automotive chip demand in Japan.

According to Japan's Yomiuri Shimbun, TSMC's updated plans will bring its total investment in the second fab to US$17 billion, up from US$12.2 billion.