Taiwan Chipmaker’s New Factory: Utilize Advanced Products to Boost Japan’s Competitiveness

Editorial

16:43 JST, February 13, 2026

Taiwan Semiconductor Manufacturing Co., the world’s largest contract chipmaker, has decided to produce chips in Japan that are close to being the most cutting-edge.

As the use of artificial intelligence continues to grow, it is significant for Japan to ensure stable procurement of advanced products. 

TSMC initially planned to start mass production of products, mainly 6-nanometer chips, in 2027 at its second factory in Japan, which is currently under construction in Kikuyo, Kumamoto Prefecture. One nanometer is one-billionth of a meter. These chips were envisaged to be used for electric vehicles and other products. 

However, C.C. Wei, TSMC chairman and chief executive officer, informed Prime Minister Sanae Takaichi early this month that the company would change plans to produce 3-nanometer chips, instead of less advanced chips.

For semiconductors, the smaller the circuit line width is, the higher its performance. Achieving this level of miniaturization requires extremely advanced technology.

For example, 40-nanometer chips are used in industrial machinery and home appliances, while the latest iPhone models use 3-nanometer chips.

So far, TSMC has mass-produced high-performance chips only in Taiwan, considering the technology strictly confidential. Production of the most advanced 2-nanometer products only began in Taiwan last year.

Anticipating increased demand for chips to be used at data centers in Japan, TSMC has reportedly changed its plans for the country. This was likely a decision made after careful consideration.

The use of generative AI is expanding in manufacturing, IT and other sectors. The data centers necessary for the technology require enormous computing capabilities, making 3-nanometer chips fiercely sought after worldwide.

Japanese companies have only achieved production of 40-nanometer chips at best. If 3-nanometer chips are produced in Japan, that will help enhance the nation’s industrial competitiveness.

With an eye to a possible contingency in Taiwan, this move is also crucial from an economic security perspective.

The government has decided to provide up to ¥1.2 trillion in subsidies to TSMC. The revised plans are expected to require additional funding. The government should carefully assess the risks and consider further support, on the premise of a framework in which the company will prioritize semiconductor supplies for Japan.

It will also be crucial for Japanese manufacturers and IT companies, which are semiconductor buyers, to sustain demand for chips by developing new products and services.

Japan boasts many leading companies in fields such as semiconductor materials and manufacturing equipment. If production bases are established in Japan for advanced semiconductors, a sound supply chain will expand. Employment in regional areas is also likely to increase.

In Kumamoto Prefecture, entities including Kumamoto University are advancing initiatives to cultivate semiconductor specialists. Active support from the central government and other entities is also necessary.

Meanwhile, Rapidus Corp., a domestic chipmaker fully backed by the government, aims to begin mass production of 2-nanometer chips in Chitose, Hokkaido, in 2027. It is hoped that TSMC and Rapidus will both play key roles in revitalizing the semiconductor industry.

 (From The Yomiuri Shimbun, Feb. 13, 2026)