TSMC Says Second $17bn Plant in Japan Will Make 3nm Chips

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.

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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.

See also:

Nvidia delays sales of artificial intelligence chips to China again due to security review

Chip manufacturers said that in the context of prioritizing the development of artificial intelligence, there are insufficient chips for PCs and mobile phones.

ByteDance, Alibaba get Beijing’s approval to purchase Nvidia’s H200 chips

Chip giant SK Hynix plans to invest $10 billion in the U.S. as profits soar

Nvidia requires Chinese buyers to pay upfront for H200 chips

China now requires chipmakers to use at least 50% domestic equipment

U.S. delays new chip tariffs on China to keep peace

China’s big technological secret: Dutch chip-making machine replicated in laboratory

China actively lobbies for Nvidia H200, but local chips remain key

China ‘cuts electricity bills in half’ for its AI chip companies – FT

Chinese AI firms form alliance with chipmakers to ditch foreign technology

Jim Pollard

Jim Pollard is an Australian journalist based in Thailand since 1999. He worked for News Ltd newspapers in Sydney, Perth, London and Melbourne before traveling to South East Asia in the late 1990s. He served as a senior editor at The Nation for more than 17 years.

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