TSMC on Thursday confirmed major investment plans to produce advanced 3-nanometer chips in southern Japan.
The Taiwanese chipmaker, which is riding a huge global boom in the use of artificial intelligence, will build a second fab production facility, which a local newspaper said is expected to cost about $17 billion, Chief Executive CC Wei said.
TSMC is the world’s largest contract chipmaker and a top supplier of artificial intelligence chips to semiconductor designers such as Nvidia. Until now, most chips have been made in Taiwan.
See also: Chinese solar panel maker shares rise after Musk team visit
TSMC has invested heavily in production facilities in the United States and will soon have two fabs on the Japanese island of Kyushu. The first produces less advanced chips, and the second will be used to produce 3nm chips.
Three-nanometer chips are high-end products that the company also hopes to produce at its Arizona factory.
The boom in artificial intelligence has made TSMC the most valuable listed company in Asia.
Company CEO CC Wei met with the Japanese Prime Minister in Tokyo today and held talks with Japanese partners and customers on cooperation in various industries and sub-fields.
“We believe this factory will further contribute to local economic growth and, most importantly, lay the foundation for Japan’s artificial intelligence business,” Reuters quoted Wei as telling High Market.
The meeting comes at a perfect time for the country’s first female prime minister, who faces election to the House of Commons this Sunday (February 8). Recent polls suggest she should win a majority.
The Japanese government is subsidizing chip manufacturing at TSMC’s first factory and is considering further support for new investment plans, the Yomiuri Shimbun reported.
TSMC said last month that construction on its second factory had begun.
The government is also backing Rapidus, which is building a local foundry that will produce advanced chips in Hokkaido, the northernmost island.
Yomiuri said the chips from the two companies will be used for different purposes.

