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Taiwan Semiconductor Manufacturing Company (TSMC) plans to mass-produce advanced 3-nanometre chips in Kumamoto, southern Japan, with an investment of $17 billion, the Yomiuri newspaper reported on Thursday.

According to Yomiuri reports, TSMC has decided to build 3nm production capacity at its second Kumamoto plant and has informed the Japanese government of this plan. A senior TSMC executive is expected to meet with Prime Minister Sanae Takaichi on Wednesday to briefly discuss this matter. 

TSMC initially planned to produce 6-12 nanometer chips at the second Kumamoto facility, which is under construction in Kiykuyo town, with an investment of $12.2 billion, but has now decided to revise the business plan with the Japan industry ministry. 

Also read: NVIDIA’s $50B China AI Bet Stuck in Security Limbo

Three-nanometre chips are utilised in data centres for applications including artificial intelligence, autonomous vehicles, and advanced robotics. Currently, Japan lacks a domestic chip production base capable of that scale. The Japanese government, which has invested 732 billion yen in subsidies for the second plant, is considering the plan as a boost to economic security and additional support, Yomiuri reported. 

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Shipra

Shipra Prajapati is a Senior Writer at TradeFlock with over 5 years of experience in business content and digital publishing. She plays a key role in managing articles and blogs while overseeing the digital presence of TradeFlock. With a strong focus on accuracy and credibility, she is responsible for fact-checking and ensuring that all published content meets high editorial standards.

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