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Investment of 17 Billion US-$ TSMC Considers Chip Manufacturing Using 3nm Process in Japan

From Sebastian Gerstl | Translated by AI 2 min Reading Time

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According to Japanese media reports, TSMC is planning to upgrade the technology at its site in Kumamoto. According to these reports, the semiconductor manufacturer is in talks with the Japanese government to produce chips using the 3 nm process at this plant in the future.

The TSMC site of Japan Advanced Semiconductor Manufacturing in Kumamoto, Japan. While the second fab currently under construction was initially only intended for the production of semiconductors using the N6 process, the contract manufacturer is currently negotiating with the Japanese government to possibly upgrade the site to N3 after all.(Image: JASM)
The TSMC site of Japan Advanced Semiconductor Manufacturing in Kumamoto, Japan. While the second fab currently under construction was initially only intended for the production of semiconductors using the N6 process, the contract manufacturer is currently negotiating with the Japanese government to possibly upgrade the site to N3 after all.
(Image: JASM)

TSMC is considering manufacturing chips using the 3-nanometer process in Japan for the first time. According to reports in the Japanese media, the investment volume for a second factory in Kumamoto is set to rise to around 17 billion US dollars (approx. 14.5 billion euros). The plant is part of TSMC's growing commitment in the Kyushu region.

The original plan was to produce semiconductors with structure sizes in the range of 6 to 12 nanometers in the second fab. The company and government are now examining whether to switch directly to a significantly more advanced N3 process generation instead. The talks are considered to be open-ended and a final decision has yet to be made.

Industrial Policy Classification

For Japan, the project is part of a broader strategy to strengthen the domestic semiconductor base. In addition to TSMC, the government is also supporting the local foundry project Rapidus, which aims to develop modern logic chips in Hokkaido. Government representatives emphasize that both initiatives are intended to address different market segments.

The planned upgrade of the TSMC factory is also seen as a success for Prime Minister Sanae Takaichi's industrial policy agenda. The responsible Ministry of Economic Affairs is planning to significantly increase funding for semiconductor and AI projects in the coming fiscal year. A meeting between TSMC CEO C. C. Wei and the government has been announced.

At the same time, TSMC is pushing ahead with the international expansion of capacity in order to meet the demand for high-performance chips from customers such as Nvidia and Apple. At the same time, production and infrastructure in Taiwan are increasingly reaching their limits, for example in terms of energy and available space.

It remains unclear how far the technological shift will go. TSMC has repeatedly emphasized that it will continue to locate the most advanced processes primarily in Taiwan. According to the company, the plans for Japan are still at an early stage.(sg)

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