Japan’s semiconductor story is entering a new chapter, and the technology leap may be bigger than expected.
Taiwan Semiconductor Manufacturing Company (TSMC) will begin mass production of advanced 3-nanometre (3nm) semiconductor chips at its second fabrication plant in Japan by 2028, marking a major step in the country’s push toward next-generation chip manufacturing.
The upcoming facility is expected to produce nearly 15,000 12-inch wafers per month using 3nm process technology, among the most advanced nodes currently available for commercial semiconductor production.
TSMC has already committed more than $20 billion toward its first and second Japan fabs. While the final investment figure for the second plant remains undisclosed, local reports estimate the project could cost around $17 billion.
The expansion is being executed through Japan Advanced Semiconductor Manufacturing (JASM), a joint venture established in 2021 with support from Sony Group. Automotive component supplier Denso and Toyota Motor Corporation have joined as minority investors, highlighting the strategic importance of semiconductor supply for Japan’s automotive industry.
TSMC’s first Japan fabrication plant entered mass production in late 2024, initially focusing on mature process technologies such as 40nm, 28nm, and 12/16nm nodes. The shift to 3nm production represents a significant upgrade in technological capability and signals a change in the company’s Japan strategy.
The new plant will introduce advanced manufacturing equipment and expand high-performance chip output to support growing demand from sectors including artificial intelligence, automotive electronics, and consumer devices.
Japan’s collaboration with TSMC reflects broader national efforts to strengthen domestic semiconductor manufacturing and reduce reliance on overseas supply chains amid intensifying global competition for advanced chip capacity, according to reports.
