A major shift in Japan’s semiconductor ambitions is now taking shape, as Taiwan Semiconductor Manufacturing Company confirms a significant technology upgrade at its upcoming facility.
TSMC has announced that it will manufacture advanced 3nm chips at its second plant in Kumamoto, Japan. This marks a sharp upgrade from its earlier plan to produce chips in the 6nm to 12nm range. The announcement was made in Tokyo by CEO C.C. Wei during a meeting with Japanese Prime Minister Sanae Takaichi, who described the move as a major boost for the country’s technology ecosystem.
The project’s total investment has now risen to $17 billion, reflecting the higher complexity of the manufacturing process. Japan’s government is also considering additional support as part of its broader push to strengthen domestic semiconductor capabilities.
Prime Minister Takaichi called the development “thrilling,” noting that 3nm chips will play a critical role in powering next-generation technologies such as artificial intelligence, robotics, and autonomous vehicles.
Japan’s chip manufacturing landscape is already gaining momentum. TSMC’s first Kumamoto plant is operational, backed by partnerships with Sony and Toyota. At the same time, domestic chipmaker Rapidus is progressing toward the development of smaller, sub-3nm chips, although no specific timeline has been disclosed.
Together, these efforts are positioning Japan as a stronger force in global semiconductor manufacturing. The timing is seen as strategic, as worldwide demand for high-performance chips continues to surge, driven largely by rapid advances in AI-related technologies.
With advanced production now confirmed at Kumamoto, Japan’s role in the global chip supply chain is expected to expand further in the coming years.
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