Taiwan Semiconductor Manufacturing Co. will start making advanced 3-nanometer chips in Japan, stepping up plans to manufacture semiconductors in the country in a triumph for Prime Minister Sanae Takaichi¡¯s technology ambitions.
The go-to chipmaker for Nvidia and Apple has decided to adopt cutting-edge technology for its second wafer fabrication plant in Kumamoto, people familiar with the matter said. That marks an upgrade from an original blueprint to produce 7nm chips by late 2027, the people said, asking to remain anonymous discussing private deliberations. To drive that expansion, the Taiwanese company plans to hike its overall investment in the plant to ?2.6 trillion ($17 billion), the Yomiuri Shimbun reported Thursday.
TSMC¡¯s planned upgrade in Japan is likely to boost Takaichi¡¯s goal to bolster domestic chipmaking, upholding a policy her predecessors established. Under Takaichi, Japan¡¯s industry ministry is set to nearly quadruple its budgeted support for cutting-edge semiconductors and artificial intelligence development to about ?1.23 trillion for the fiscal year starting in April. Takaichi is due to meet TSMC Chief Executive Officer C. C. Wei on Thursday to discuss the marquee project.
Asia¡¯s most valuable company is accelerating a buildout around the world to meet a surge in demand for the high-end chips required to train and operate AI services. At the same time, Taiwan faces growing challenges when it comes to supplying resources including land and electricity.
TSMC¡¯s plans in Japan, however, are in the early stages of discussion and could still change, the people said. Representatives for the company didn¡¯t respond to requests for comment.
While Taiwanese officials and TSMC have repeatedly pledged to keep the most cutting-edge technology at home, the company intends to add capacity for more mature semiconductors overseas to alleviate resource constraints at home.
That global push will further help mitigate concerns from major governments that chip production is centralized in self-governing Taiwan, which China claims as its own and vows to take over one day.
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