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Taiwan Semiconductor Manufacturing Corp., a major chip supplier
to companies such as Nvidia and Apple, said Thursday it plans to
make 3-nanometer semiconductors — advanced chips that are used
in areas such as AI products and smartphones — at its second
factory in Japan’s Kumamoto Prefecture, which is under
construction.
The decision by TSMC, the world’s largest contract chip maker,
was a coup for Prime Minister Sanae Takaichi ahead of a general
election on Sunday, where she hopes to secure the public’s
mandate for her policies riding on high approval ratings.
The announcement came while Takaichi was meeting with TSMC's CEO
and Chairman, C.C. Wei, in Tokyo.
“It is very meaningful from the perspective of Japanese economic
security, and I would like the project to move forward as
proposed, by all means," Takaichi said during the meeting.
The advanced chips set to be made in Kumamoto will be used in
AI, robotics and autonomous driving, sectors that Takaishi’s
cabinet has designated as strategically important fields.
TSMC's first Kumamoto plant started mass production in late 2024
and makes less advanced chips. The company also is building new
plants in Arizona in the U.S. to create a fabrication plant
cluster and meet growing demand from customers building on the
global AI frenzy.
TSMC said in a separate emailed statement that Wei believes
Japan’s “forward-looking semiconductor policy will deliver
significant benefits to the semiconductor industry.”
As Japan looks to gain ground in global advanced chipmaking
competitiveness, it is also providing huge subsidies for its
domestic chipmaker Rapidus, which is advancing towards mass
producing cutting-edge chips.
“There is a huge significance to have the world’s most advanced
semiconductor factory in Japan from the perspective of economic
security,” the Prime Minister’s Office said in a message posted
on X on Thursday.
Despite growing concerns over a potential AI-related bubble
where massive investments may not pay off, TSMC’s Wei said last
month he was confident the growing AI demand from its customers
is “real.”
Last month, TSMC said it plans to increase capital spending by
up to nearly 40% this year as AI-related demand lifted its
profits. It plans to raise its capital spending for 2026 to $52
billion-$56 billion, up from last year's $40 billion.
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Chan reported from Hong Kong.
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