TSMC to Make More Advanced Chips in Japan as Part of AI Push — Update
By Yang Jie and Sherry Qin
Taiwan Semiconductor Manufacturing plans to start making more advanced chips in Japan, a move that would be a major boost to the country's efforts to secure cutting-edge technology needed for artificial intelligence.
Japan's prime minister, Sanae Takaichi, said the advanced chips made at TSMC's Kumamoto site will be used in data centers, AI, robotics and autonomous driving, fields her cabinet has designated as strategic sectors.
"TSMC's expansion in Kumamoto will fill a missing piece for our nation by enabling the domestic production of advanced logic semiconductors," she said Thursday during a meeting with TSMC's chairman, C.C. Wei.
Wei announced the manufacturing upgrade during the meeting.
Once production at Kumamoto starts, it will mark the first time TSMC has made 3-nanometer chips in Japan.
Originally, TSMC's factory in the southern Japanese prefecture was supposed to focus on logic chips for cars and telecoms equipment using 6 to 12-nanometer technology.
Construction of the fab began last fall but factors including geopolitical complications and sluggish demand for less advanced chips led TSMC to delay and re-evaluate production plans in favor of the high-performance chips required for AI applications, The Wall Street Journal has reported.
The adoption of 3-nanometer technology represents a major leap for Japan, which doesn't have capacity to mass produce advanced chips essential for AI.
Japan's government has been pushing to change that, pledging billions in support for key sectors. Projects with government backing include Rapidus's chip-production project in Hokkaido, U.S. memory maker Micron Technology's facilities in Hiroshima and TSMC's Kumamoto factory.
TSMC has previously outlined plans to invest $20 billion in Japan. No details on changes to the investment plan were provided Thursday.
Wei said that the upcoming fab will help form the foundation of Japan's AI business, and contribute to local economic growth.
Write to Yang Jie at jie.yang@wsj.com and Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
February 05, 2026 02:09 ET (07:09 GMT)
Copyright (c) 2026 Dow Jones & Company, Inc.The articles, information, and content displayed on this webpage may include materials prepared and provided by third parties. Such third-party content is offered for informational purposes only and is not endorsed, reviewed, or verified by Morningstar.
Morningstar makes no representations or warranties regarding the accuracy, completeness, timeliness, or reliability of any third-party content displayed on this site. The views and opinions expressed in third-party content are those of the respective authors and do not necessarily reflect the views of Morningstar, its affiliates, or employees.
Morningstar is not responsible for any errors, omissions, or delays in this content, nor for any actions taken in reliance thereon. Users are advised to exercise their own judgment and seek independent financial advice before making any decisions based on such content. The third-party providers of this content are not affiliated with Morningstar, and their inclusion on this site does not imply any form of partnership, agency, or endorsement.
Popular
4 Stocks to Buy for the Long-Term While They’re Still Undervalued
Are TIPS ETFs the Best Way to Fight Inflation?
What’s Ahead for Stocks This Quarter—and Where to Invest
10 Best Blue-Chip Stocks to Buy for the Long Term
United States