TSMC to Invest $17 Billion to Produce 3-nm Chips in Southern Japan
By Reuters | 04 Feb, 2026

The new Kyushu fab will be its 2nd Japan plant and is similar to the cutting-edge fab scheduled to begin operations in Arizona in 2027.

TSMC plans to mass produce advanced 3-nanometre chips in Kumamoto in southern Japan with investment totalling $17 billion, Japanese newspaper Yomiuri reported on Thursday.

Japan's government, which has subsidised Taiwan's leading chipmaker to build out capacity in Kyushu, is considering additional support for the new investment plan, Yomiuri reported. 

TSMC had planned to invest $12.2 billion on 6-12 nanometre chipmaking capacity at its second fab in Kyushu but will discuss changes to the plan with Japan's government, Yomiuri reported.  

TSMC executives will visit the prime minister's office on Thursday.

TSMC did not immediately respond to a request for comment.

The company said on an earnings call in January that the construction of its second fab in Japan has started, and "the technologies and ramp schedule will be based on our customers' need and market conditions."

TSMC currently makes its 3-nanometre chips in Taiwan, and plans to begin producing them at its second fab in Arizona in 2027.

Japan is also heavily subsidising homegrown foundry venture Rapidus, which will produce cutting-edge chips on the northern island of Hokkaido. 

The government has determined the two companies' chips will have different uses and will not be in competition, Yomiuri reported.  

Securing access to chips, which are critical for electronics, automotive and defence industries, has become a priority for governments around the world. 

(Reporting by Kantaro Komiya, Sam Nussey and Wen-Yee Lee; Editing by Chris Reese & Shri Navaratnam)