TSMC to Make Advanced AI Semiconductors in Japan in Boost for Its Chipmaking Ambitions

Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest contract chipmaker, announced it will produce advanced 3‑nanometer semiconductors in Japan’s Kumamoto Prefecture to meet booming AI demand, marking a major strategic expansion that strengthens Japan’s high‑end chipmaking capabilities and TSMC’s global footprint.

By Sarah Mitchell – Senior News Correspondent

Last Updated: Feb. 4, 2026

Advanced 3nm Chip Production Headed to Kumamoto

TSMC plans to manufacture cutting‑edge 3‑nanometer semiconductors — widely used in artificial intelligence, high‑performance computing, robotics and autonomous driving — at its second fabrication plant in Kumamoto, Japan, which is currently under construction. This will be the first time such advanced chips are produced in Japan, part of the company’s strategy to meet growing global demand for AI‑related chips from customers like Nvidia and Apple. :contentReference[oaicite:0]{index=0}

Strategic Boost for Japan’s Chip Ambitions

The move is seen as a significant win for Japanese economic and technological strategy, helping reduce reliance on overseas supply chains and strengthening domestic semiconductor competitiveness. Japanese Prime Minister Sanae Takaichi described the project as meaningful for economic security as her administration emphasizes technology sectors ahead of a general election. :contentReference[oaicite:1]{index=1}

Investment and Global Expansion Plans

Local media reported that TSMC’s investment in the advanced chipmaking upgrade could total around $17 billion, reflecting a major increase from earlier plans to make less advanced chips. In addition to Japan, TSMC is also expanding production in the U.S., with a new 3nm fab planned in Arizona for 2027, as part of broader efforts to diversify and grow its global manufacturing footprint. :contentReference[oaicite:2]{index=2}

AI Demand Drives Strategic Decisions

Rising demand for AI semiconductors continues to shape TSMC’s capital spending and location strategy. The company plans to significantly increase capital expenditure in 2026, leveraging strong demand from AI and high‑performance computing markets. Japan’s forward‑looking semiconductor policies and subsidies have helped attract TSMC’s advanced technology production to the country. :contentReference[oaicite:3]{index=3}

Implications for the Semiconductor Industry

TSMC’s decision to build advanced chip capacity in Japan highlights the growing geopolitical importance of semiconductor supply chain resilience. By situating 3nm production outside Taiwan — traditionally the heart of cutting‑edge chip manufacturing — TSMC helps bolster regional technological capability and diversify global supply amid rising competition and strategic concerns. :contentReference[oaicite:4]{index=4}