Taiwan Semiconductor Manufacturing Co. (TSMC) has announced plans to construct a second fabrication plant in Japan, with equipment installation and mass production of advanced 3-nanometer chips scheduled to begin in 2028. The company confirmed the plan in a Taiwanese government filing and an official press release issued Tuesday.
The new facility will be located in Kumamoto Prefecture on the island of Kyushu, alongside TSMC’s first Japanese plant, which is scheduled to begin operations by the end of 2024. The project is an expansion of Japan Advanced Semiconductor Manufacturing, Inc. (JASM), a majority-owned subsidiary of TSMC.
Total investment in JASM, including both plants, is expected to exceed $20 billion with substantial support from the Japanese government. According to the announcement, existing JASM investors Sony Semiconductor Solutions and DENSO Corporation will increase their holdings. Toyota Motor Corporation will also take a minority stake in the venture.
Following the new investments, TSMC will hold approximately 86.5% of JASM, with Sony at 6.0%, DENSO at 5.5%, and Toyota at 2.0%.
The construction of the second plant is planned to commence at the end of 2024. Once both facilities are operational, JASM is projected to have a combined monthly production capacity of more than 100,000 12-inch wafers. The company stated this expansion will create over 3,400 high-tech professional jobs.
TSMC’s first plant in Kumamoto will focus on producing semiconductors using 12/16-nanometer and 22/28-nanometer process technologies, primarily for automotive, industrial, and consumer applications. The second plant represents a technological step forward for Japan’s domestic manufacturing capabilities, as it will produce chips using more advanced 6/7-nanometer and 3-nanometer processes. These smaller, more powerful chips are used in high-performance computing, artificial intelligence, and advanced mobile devices.
The investment is part of a broader global trend of diversifying semiconductor supply chains. The Japanese government has actively sought to attract foreign chipmakers through subsidies to bolster its domestic production capacity and ensure a stable supply of critical components.
In a statement, TSMC CEO Dr. C.C. Wei said, “Our decision to further expand our presence in Japan underscores the confidence we have in our partners and the local talent. We are grateful for the continued support of the Japanese government.”
The company has not provided a specific figure for the government subsidies, but Japan’s Ministry of Economy, Trade and Industry has previously offered significant financial packages to support semiconductor projects.
