TSMC plans to invest approximately $17 billion to mass-produce advanced three-nanometre chips. The production will occur at its plant in Kumamoto, Japan, according to the Yomiuri newspaper.
This move significantly expands TSMC's manufacturing capabilities outside of Taiwan. It also marks a major technological step up for its Japanese facilities.
The Japanese government is reportedly considering additional support for the new investment. Tokyo already provides subsidies for TSMC's existing Kumamoto operations.
This $17 billion plan changes the previous expectation of a $12.2 billion investment. That prior plan focused on less advanced 6 to 12-nanometre chipmaking capacity at the second regional fab.
The investment underscores the growing global importance of securing supply chains for cutting-edge semiconductors.