TSMC will manufacture 3nm chips at its second plant in Kumamoto, Japan, marking a major upgrade to its previously announced plans of producing 6-12nm chips there. TSMC CEO CC Wei confirmed the move during a meeting in Tokyo with Prime Minister Sanae Takaichi, citing soaring global demand for AI chips. The investment is reported to be 17 billion dollars, according to Japanese daily Yomiuri.

The Japanese government, which has already subsidized TSMC’s JASM joint venture with Sony, is considering additional support for the upgraded investment plan. Japan’s homegrown foundry Rapidus, which targets mass production of 2nm chips by 2027, is also receiving heavy backing. The two initiatives will serve distinct markets, according to the government.

