TMSC to Produce 3-Nanometer Semiconductors in Japan’s Kumamoto Pref.; Takaichi Pledges Support in Meeting with Executives

The Yomiuri Shimbun

17:53 JST, February 5, 2026

Taiwan Semiconductor Manufacturing Co. (TSMC) told the Japanese government on Thursday about its plan to mass-produce 3-nanometer semiconductors in Kumamoto Prefecture.

This will be the nation’s first plant for cutting-edge 3-nanometer semiconductors. One nanometer is one-billionth of a meter.

Prime Minister Sanae Takaichi met with TSMC executives, including chairperson C.C. Wei, at the Prime Minister’s Office and told them the government will support the project, as it is important for economic security.

TSMC is the world’s largest contract manufacturer of semiconductors.

Takaichi said the government focuses on investments that will support crisis management and economic growth. “Strategies related to artificial intelligence and semiconductors are an important part of those efforts,” said Takaichi, who added that the plan is “highly encouraging.”

TSMC initially planned to produce 6-12 nanometer semiconductors at its second plant in the prefecture, which is under construction in Kikuyo. In light of the high global demand for chips, however, it decided to manufacture even higher-performance semiconductors.

The company will expand its capital investment in the second plant to $17 billion (¥2.6 trillion) from $12.2 billion (¥1.8 trillion).

TSMC plans to formally decide on the plan changes and will advance discussions with the Economy, Trade and Industry Ministry.

Although 3-nanometer semiconductors are expected to be used in data centers for artificial intelligence, AI-powered robots for advanced manufacturing and autonomous driving, among other areas, there are no domestic manufacturing bases capable of producing them. The latest plan is expected to strengthen the stable supply of semiconductors to industries in Japan.

Global competition for semiconductors is intensifying, with Chinese manufacturers expanding their market share. Semiconductor factories capable of manufacturing less than 10-nanometers chips are currently concentrated in Taiwan and the United States.

The Takaichi Cabinet is striving to bring plants to Japan through subsidies and other incentives, prioritizing concentrated investment in growth sectors such as semiconductors, AI and digital technology.