TSMC to make advanced AI semiconductors in Japan
Source: Hacker News
Taiwan’s chipmaker TSMC said Thursday it will be manufacturing some of the world’s most cutting‑edge semiconductors in Japan to meet booming artificial‑intelligence‑related demand, a boost for the country’s chipmaking ambitions.
3‑nanometer production in Kumamoto
Taiwan Semiconductor Manufacturing Corp., a major chip supplier to companies such as Nvidia and Apple, plans to make 3‑nanometer semiconductors—advanced chips used in AI products and smartphones—at its second factory in Japan’s Kumamoto Prefecture, which is currently under construction. The first Kumamoto plant began mass production in late 2024 and produces less advanced chips.
Political context
The decision was hailed as a coup for Prime Minister Sanae Takaichi ahead of a general election on Sunday, where she hopes to secure a public mandate for her policies. Takaichi met with TSMC’s CEO and Chairman C.C. Wei in Tokyo and said:
“It is very meaningful from the perspective of Japanese economic security, and I would like the project to move forward as proposed, by all means.”
Target applications
The advanced chips to be produced in Kumamoto will be used in AI, robotics, and autonomous driving—sectors that Takaichi’s cabinet has designated as strategically important.
Other TSMC projects
TSMC is also building new plants in Arizona, USA, to create a fabrication‑plant cluster and meet growing demand from customers riding the global AI frenzy.
Japan’s semiconductor policy
Japan is seeking to strengthen its position in advanced chipmaking and is providing substantial subsidies for its domestic chipmaker Rapidus as it moves toward mass production of cutting‑edge chips.
Financial outlook
TSMC announced it will increase capital spending by up to nearly 40 % this year as AI‑related demand lifts its profits. The company plans to raise its 2026 capital spending to $52 billion–$56 billion, up from last year’s $40 billion. Details are in the company’s statement on capital spending.
Reported from Hong Kong by Chan.