Taiwan Semiconductor Manufacturing Company (TSMC) is set to significantly boost its advanced chip production with plans to manufacture cutting-edge 3-nanometer (3nm) semiconductors at its second factory in Japan.
This new facility, part of Japan Advanced Semiconductor Manufacturing (JASM), is projected to involve equipment investment exceeding $23 billion.
TSMC’s Japan arm expressed gratitude to the Japanese government for its crucial support. The company confirmed that production and investment will be rolled out in phases, carefully aligning with market demand and contingent on continued government backing. This strategic move aims to meet the surging global demand for advanced chips, especially those powering Artificial Intelligence (AI) technologies.
JASM, a joint venture involving TSMC and its partners, already operates semiconductor facilities in Kumamoto, Japan. The introduction of 3nm technology at the second factory marks a pivotal step towards more sophisticated chip manufacturing in the region. This expansion is crucial for providing advanced technology to customers not just in Japan, but across the globe, while emphasizing environmentally conscious ‘green manufacturing’ technologies.
In a related development, TSMC and Sony Semiconductor Solutions formed another joint venture, Advanced Vision Semiconductor Manufacturing Corp., in Kumamoto last August, focusing on next-generation image sensors with production slated for 2029. This broader expansion reflects TSMC’s robust growth, evidenced by a 68.7% year-on-year rise in net profit to $23.86 billion in the July-September quarter, highlighting the intense demand for advanced semiconductor technologies worldwide.