Recent reports from multiple industry media sources reveal that Taiwan Semiconductor Manufacturing Company (TSMC) has officially informed the Japanese government of its plans to revise the production strategy for its second fabrication plant in Kumamoto, Japan — operated by its majority-owned unit Japan Advanced Semiconductor Manufacturing (JASM). The facility’s main production line, originally planned for 6–12 nm technologies, is now being upgraded to advanced 3 nanometer process technology, representing a significant technological shift.
Local Japanese press indicate that TSMC’s initial investment plan for the site was approximately $12.2 billion USD focused on mid-node chips. However, with the upgrade to cutting-edge 3 nm logic production, the total projected investment has risen to about $17 billion USD (around 170 billion in current estimates). This would mark the first time Japan hosts manufacturing of such advanced semiconductor nodes domestically.
The shift comes as global demand for high-performance computing, artificial intelligence (AI) accelerators, and next-generation mobile and data center chips continues to surge — all of which increasingly depend on advanced process technologies. By deploying 3 nm capabilities in Japan, TSMC broadens its global manufacturing footprint and supports a more diversified supply chain.
The Japanese government has offered substantial subsidies and policy backing for this initiative, reflecting its strategic priority to reinforce domestic semiconductor manufacturing. Officials have also noted that this plan is complementary to other local advanced R&D efforts, such as Rapidus’ push toward 2 nm technologies, rather than being in direct competition.
If successful, the project promises to elevate Japan’s role in advanced semiconductor production and energize regional high-tech employment and supply chain development over the coming years.