TSMC to Invest $17 Billion in Japan

TSMC is moving forward with its advanced chipmaking plans in Japan. The company is targeting investing up to JPY2.6 trillion ($17 billion) to produce 3nm chips.

The contract chipmaker initially planned for a second plant in Kumamoto prefecture, which is under construction, to produce 6nm to 12nm chips with an investment of around $12.5 billion. The government lined up JPY732 billion in subsidies for the second facility in 2024.

With the updated roadmap expected to significantly strengthen Japan’s semiconductor manufacturing capacity, the government is considering additional support, the newspaper wrote. The second plant is a venture involving TSMC, a Sony Semiconductor subsidiary, and Denso Corp.

TSMC, a major supplier to Nvidia and Apple, makes 3nm chips at home and plans produce them at a fab in Arizona in 2027. The government is also backing local start-up Rapidus with JPY1.7 trillion in funding. The company plans to begin mass-producing 2nm chips in fiscal 2027 in Hokkaido.