Taiwan Semiconductor Manufacturing Co. (TSMC) will produce advanced 3-nanometer chips at its second plant in Kumamoto, Japan. CEO C.C. Wei announced the decision.
This move upgrades the facility's original plan to manufacture less advanced chips. TSMC makes the strategic shift to meet surging demand for artificial intelligence semiconductors.
Japanese media reports the total expansion investment could reach $17 billion.
The decision positions Japan as a key location for high-end logic chip production. This aligns with global efforts to diversify the semiconductor supply chain. The expansion bolsters Japan's role in the AI industry and enhances its economic security.