Taiwan Semiconductor Manufacturing Corp., a major chip supplier to companies such as Nvidia and Apple, said Thursday it plans to make 3-nanometer semiconductors — advanced chips that are used in areas such as AI products and smartphones — at its second factory in Japan’s Kumamoto Prefecture, which is under construction.
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The announcement came while Takaichi was meeting with TSMC’s CEO and Chairman, C.C. Wei, in Tokyo.
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TSMC’s first Kumamoto plant started mass production in late 2024 and makes less advanced chips. The company also is building new plants in Arizona in the U.S. to create a fabrication plant cluster and meet growing demand from customers building on the global AI frenzy.
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As Japan looks to gain ground in global advanced chipmaking competitiveness, it is also providing huge subsidies for its domestic chipmaker Rapidus, which is advancing towards mass producing cutting-edge chips.
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Despite growing concerns over a potential AI-related bubble where massive investments may not pay off, TSMC’s Wei said last month he was confident the growing AI demand from its customers is “real.”
Last month, TSMC said it plans to increase capital spending by up to nearly 40% this year as AI-related demand lifted its profits. It plans to raise its capital spending for 2026 to $52 billion-$56 billion, up from last year’s $40 billion.
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