Taiwan Semiconductor Manufacturing Co. (TSMC) announced plans on February 5, 2026, to produce advanced 3-nanometer chips at its second plant in Kumamoto, Japan. This facility was originally slated for less advanced semiconductor nodes.

TSMC CEO C.C. Wei shared the updated roadmap with Japanese Prime Minister Sanae Takaichi. The total investment for the project has risen to $17 billion following a pledge of government support.

The strategic shift responds to surging global demand for artificial intelligence (AI) applications. TSMC is pivoting production away from the weakening automotive chip sector. Mass production at the Kumamoto site is targeted for late 2027.