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

02-05-26 0209ET