Taiwan Semiconductor Manufacturing (TSMC) announced plans on February 5, 2026, to produce 3-nanometer semiconductors at its second factory in Kumamoto, Japan. These advanced chips will power applications in artificial intelligence, smartphones, robotics, and autonomous driving.
Chairman C.C. Wei confirmed the expansion during a meeting with Japan’s Prime Minister Sanae Takaichi. TSMC expects its 2026 capital expenditure to reach between $52 billion and $56 billion. This investment plan represents a spending increase of nearly 40%.
TSM shares rose 0.42% to $327.11, outperforming a 1.43% decline in the NASDAQ during a broader technology sell-off. Analysts maintain a price target of $408 for the stock, representing a 25.3% potential upside.