TSMC will begin mass production of 3‑nanometre wafers at its second Japanese plant in 2028, with a monthly capacity of 15,000 12‑inch wafers. The facility, located in Kumamoto, will bring leading‑edge technology outside Taiwan.
The move follows the opening of TSMC’s first Japanese fab in late 2024, which focuses on 12‑28nm nodes for automotive and industrial customers. The new 3nm plant expands TSMC’s advanced‑node output and supports the company’s strategy to diversify its manufacturing footprint.
The decision is driven by the surging demand for AI‑driven chips, which has pushed 3nm capacity to the limit. By adding a second 3nm plant, TSMC can meet this demand while reducing geopolitical concentration risk. Japan’s government subsidies and a projected investment of roughly $17 billion for the second fab support the expansion.
The 3nm process is expected to command higher margins than mature nodes, and the new capacity will help TSMC maintain its competitive edge against rivals such as Samsung. The expansion also positions Japan as a more significant hub in the advanced semiconductor supply chain, aligning with global trends to strengthen supply‑chain resilience.
Overall, the launch signals TSMC’s continued commitment to leading‑edge technology and global diversification, reinforcing its leadership in the AI chip market and mitigating risks associated with concentration in Taiwan.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.