TSMC plans to establish mass production of 3-nanometre chips in Kumamoto, on Japan's southern island of Kyushu, under a $17 billion investment, the Yomiuri newspaper reported on Thursday. The report indicates a material escalation from previously stated plans for mid-node capacity in the region and signals a shift toward more advanced process technology for production on Japanese soil.
Japan's government has already provided subsidies to TSMC to build out capacity in Kyushu and, according to the report, is considering further financial support tied to the new 3-nanometre proposal. The level and structure of any additional government assistance remain under consideration as officials evaluate the plan.
TSMC had earlier outlined investment of $12.2 billion aimed at 6-12 nanometre chipmaking capacity for its second fab in Kyushu. The Yomiuri account says the company will discuss alterations to that earlier $12.2 billion plan with the Japanese government, rather than proceeding unchanged. Details of those discussions, including timing and any reallocation of investment between sites or technologies, were not provided in the report.
TSMC did not immediately reply to requests for comment on the report. The Yomiuri report also noted Japan's substantial subsidy support for Rapidus, a homegrown foundry project located in Hokkaido that is intended to produce cutting-edge semiconductors. According to the report, Japanese authorities have concluded that TSMC and Rapidus will serve distinct end uses and will not be competing directly.
The report underscores that securing access to chips has become a government priority given their importance to the electronics, automotive and defence sectors. That priority is driving public-sector support for both foreign and domestic production initiatives in Japan.
This development adds to an ongoing policy emphasis on onshore chip production, reflected in subsidy programs and discussions between industry and government. The specific contours of the planned $17 billion investment, how it will relate to the previously announced $12.2 billion initiative, and the final form of any additional government support remain matters for further negotiation and confirmation.
Clear summary
Yomiuri reports that TSMC plans to mass produce 3-nanometre chips in Kumamoto with a $17 billion investment. Japan, which has subsidised TSMC's expansion in Kyushu, is considering extra support for the proposal. TSMC will review changes to an earlier $12.2 billion plan for 6-12 nanometre capacity with the government. Rapidus, a domestically subsidised foundry in Hokkaido, will pursue cutting-edge chips that Tokyo says will serve different applications than TSMC's output.
Impacted sectors
- Electronics manufacturing
- Automotive supply chain
- Defence procurement and supply security