TSMC to Produce 3-Nanometer AI Chips in Japan
TSMC, the world's largest semiconductor manufacturer, is preparing to produce advanced 3-nanometer chips at its second factory in Japan's Kumamoto region to meet surging AI demand. This strategic move will diversify global supply chains while strengthening Japan's position in the semiconductor industry.
TSMC Prepares for Advanced Technology Production in Japan
The world's largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC), is launching a significant geographic expansion strategy to meet the massive chip demand driven by artificial intelligence applications. The company plans to implement the 3-nanometer (nm) manufacturing process—one of the industry's most advanced technologies—at its second factory to be built in Japan's Kumamoto region. This decision will create important diversification in the global semiconductor supply chain while enhancing Japan's competitiveness in high-tech manufacturing.
It is well known that TSMC was founded in 1987 by Morris Chang (Zhang Zhongmou) and, although initially met with skepticism by many, revolutionized the industry with its unique business model (pure-play foundry). Today, the company manufactures the vast majority of the world's most advanced chips.
Kumamoto's Second Factory and 3nm Technology
According to plans announced approximately six days ago, TSMC's second factory in Japan will represent a significantly more advanced technology level than existing facilities. The 3-nanometer manufacturing process means an incredible reduction in the physical size of transistors. This allows more transistors to be packed into the same area, enabling chips to deliver much higher performance and energy efficiency. Such advanced node chips are critically important especially for artificial intelligence, machine learning, and high-performance computing (HPC) applications.
TSMC's current operations in Japan have focused more on relatively mature processes like 12nm, 16nm, 22nm, and 28nm. For example, the company's factories in China (Shanghai Fab 10 and Nanjing Fab 16) also produce 55nm, 65nm, 12nm, and 16nm chips using similar mature processes. However, the Kumamoto-2 factory will be Japan's first 'leading-edge node' production facility, positioning the region much more strategically on the semiconductor map.
This expansion represents a major technological leap for Japan's semiconductor ecosystem. The 3nm chips produced here will power next-generation AI systems, data centers, and advanced computing applications worldwide. TSMC's investment demonstrates confidence in Japan's technical workforce and infrastructure capabilities, while also serving as a strategic response to growing geopolitical considerations in semiconductor manufacturing.
