Taiwanese chipmaker TSMC (TSM) said on Thursday it will produce some of the world's most cutting-edge semiconductors in Japan to meet...Explosive growth in demand for artificial intelligence, this move will help Japan realize its chip manufacturing ambitions. As a core chip supplier to Nvidia, Apple and other companies, Taiwan Semiconductor Manufacturing Co., Ltd. (TSMC) announced on Thursday that it plans toThe second factory in Kumamoto Prefecture, JapanProduction3 nanometer chip. Such advanced chips are widely used in AI products, smartphones and other fields, and the factory is still under construction.
As the world's largest professional chip foundry, TSMC's decision is a big plus for Japanese Prime Minister Sanae Takaichi. Japan will hold a general election on Sunday, and Takaichi Sanae hopes to use this project to win public support for its policies based on high approval ratings.
The announcement coincided with Takaichi Sanae's meeting with TSMC Chairman C.C. Wei in Tokyo.
Sanae Takaichi said during the meeting: "This is extremely important from the perspective of Japan's economic security. I must hope that the project can proceed as planned."
The advanced chips that will be mass-produced in Kumamoto Prefecture will be used in fields such as artificial intelligence, robots, and autonomous driving - these are strategic key industries designated by the Takaashi Cabinet.
TSMC's No. 1 factory in Kumamoto Prefecture has entered mass production by the end of 2024 and mainly produces chips with lower technology levels. In addition, the company is also building a new factory in Arizona, USA, to create a wafer fab cluster to respond to the growing needs of customers amid the global AI boom.
TSMC said in another emailed statement that Wei Zhejia believes that Japan's "forward-looking semiconductor policy will bring significant benefits to the semiconductor industry."
In order to enhance the competitiveness of the global advanced chip manufacturing field, Japan is providing huge subsidies to domestic chip manufacturer Rapidus, which is moving towards the goal of mass production of cutting-edge chips.
Japan’s Chief Cabinet Secretary’s Office posted on the X platform on Thursday: “Localing the world’s most advanced semiconductor factory in Japan is of great significance from an economic security perspective.”
Despite growing concerns about an AI-related bubble, where huge investments may not yield returns, Wei Zhejia said last month that he was confident that customers' growing demand for AI was "real and reliable."
Last month, TSMC announced that it plans to increase capital expenditures by up to nearly 40% this year as profit growth is boosted by AI-related demand. Its 2026 capital spending target was raised to $52 billion to $56 billion, up from $40 billion last year.