TSMC has notified Taiwanese authorities that it intends to begin manufacturing 3-nanometer chips at its second Japanese foundry by 2028, according to a government filing disclosed late Tuesday. The amendment to the company's investment plan specifies a target output of 15,000 12-inch wafers per month for the facility.
The filing indicates that equipment installation and setup for the second factory are expected to start in 2028, with mass production scheduled to commence the same year. This update formalizes earlier indications from the company that the second Japanese site would host advanced 3-nanometer process technology.
TSMC established a presence in Japan in 2021 with a unit in Kumamoto, and the company expects the second facility to be located in the same prefecture. While Taiwan remains the center of its production operations, TSMC has been building capacity overseas - including foundries in the United States and Japan - and it plans further expansion at those sites.
As the world’s largest contract chipmaker, TSMC is expanding capacity to meet what it describes as outsized demand from the artificial intelligence industry. The company’s strategic push to increase production outside Taiwan is presented in the filing as a response to that strong demand profile.
Details
- The amended investment filing sets a production rate of 15,000 12-inch wafers per month for the second Japanese factory.
- Equipment installation and setup are expected to begin in 2028, with mass production also starting that year.
- The second facility is expected to be in Kumamoto prefecture, where TSMC opened its first Japanese unit in 2021.
Context
TSMC’s plan consolidates its strategy to diversify manufacturing locations beyond Taiwan by expanding overseas foundries. The filing frames the ramp-up as aligned with heightened demand from companies investing in artificial intelligence workloads.
Key points
- TSMC intends to produce 3-nanometer chips in Japan from 2028 at a planned rate of 15,000 12-inch wafers per month - impacting the semiconductor manufacturing sector and capital goods markets.
- Equipment installation and mass production are both scheduled to begin in 2028, underscoring a defined timeline for capacity deployment that market participants and supply chains will monitor.
- The expansion in Japan complements TSMC’s overseas footprint, including U.S. and Japanese foundries, and responds to demand coming from the artificial intelligence industry - relevant to AI hardware buyers and data-center service providers.
Risks and uncertainties
- Timing risk - both equipment installation and mass production are slated for 2028; any deviation from that schedule could affect capacity availability and customer supply plans. This impacts semiconductor supply chains and customers planning procurement around that timeline.
- Demand concentration - the filing ties the capacity expansion to outsized AI-driven demand; shifts in that demand could alter utilization of the new facility, affecting foundry revenue and capital allocation decisions.
- Geographic execution - locating the second unit in Kumamoto follows the 2021 establishment of a local unit, but building a second complex in the same prefecture brings execution and regional manufacturing risk that could influence local employment and supplier activity.
Conclusion
The government filing formalizes TSMC’s plan to bring advanced 3-nanometer production to its second Japanese factory with a clear monthly throughput target and a 2028 timeline for installation and mass production. The expansion underscores the company’s effort to scale overseas capacity amid strong AI-sector demand, while leaving open the usual execution and demand-related risks that accompany major fab investments.