TSMC's Strategic Semiconductor Expansion in Japan

Taiwan's TSMC plans to produce advanced 3-nanometer semiconductors in Japan's Kumamoto to meet AI-linked demand. The expansion boosts Japan's chipmaking goals, aided by governmental support. TSMC seeks to strengthen its position with new factories in Japan and the US amid the global AI boom.

Taiwan Semiconductor Manufacturing Co. (TSMC) is advancing Japan's chipmaking ambitions by announcing its plan to manufacture state-of-the-art 3-nanometer semiconductors at a new factory in Kumamoto. This move aligns with growing demand in artificial intelligence sectors.

TSMC's expansion in Japan, announced during a meeting between CEO C C Wei and Prime Minister Sanae Takaichi, represents a significant stride for Japan, positioning the nation as a key player in the global chip industry. The development also coincides with a crucial political phase as Takaichi seeks reelection.

Alongside its Japanese ventures, TSMC is building facilities in Arizona, USA, reinforcing its commitment to meet international AI demands. Despite concerns of an AI bubble, TSMC remains optimistic, intending to increase capital spending to bolster its growth in advanced semiconductor manufacturing.

(With inputs from agencies.)