Kumamoto: Taiwan Semiconductor Manufacturing Co. (TSMC) has announced plans to produce 3 nanometer chips at its second facility, currently under construction in Kumamoto, Japan. The decision was revealed during a meeting between TSMC CEO C.C. Wei and Japanese Prime Minister Sanae Takaichi, where it was disclosed that the facility will focus on addressing the increasing demand for AI technology.

According to Focus Taiwan, Japanese Prime Minister Takaichi expressed enthusiasm about the development and indicated that her government is prepared to provide financial support for the project. Takaichi emphasized the significance of the 3nm technology, which is pivotal for AI robots and autonomous vehicles, and highlighted its importance from an economic security perspective.

TSMC had initiated mass production at its first Kumamoto plant in late 2024, with support from major companies such as Sony and Toyota. Originally, the second facility was intended to produce 6- to 12-nm chips, but plans have shifted to accommodate the more advanced 3nm chips, with operations expected to commence in late 2027.

Trend Force, a Taiwan-based global market intelligence firm, noted that the updated strategy would enable TSMC to leverage AI-related opportunities while moving away from declining automotive chip demand in Japan. As reported by Japan's Yomiuri Shimbun, TSMC's revised plans will increase its total investment in the second facility to US$17 billion, up from the initially planned US$12.2 billion.