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TSMC leadership identifies Kumamoto as key manufacturing base to meet strong AI demand
Monday, March 30, 2026 at 08:06 PM
TSMC leadership emphasized their commitment to utilizing Kumamoto as a primary manufacturing base to meet growing global demand for AI semiconductors. The company is deepening its footprint in Japan through successive fab projects to secure a stable supply chain for advanced logic chips.
Context
TSMC has officially designated Kumamoto, Japan, as a primary manufacturing base to support global AI demand. In a strategic shift, the company is upgrading its second planned facility (JASM Phase 2) to produce advanced 3-nanometer chips, a significant leap from the originally planned 6-nanometer/7-nanometer nodes. This expansion involves a reported investment of $17 billion, bolstered by significant subsidies from the Japanese government to enhance regional economic security and self-sufficiency in high-performance computing. This move positions Japan alongside Taiwan and the U.S. as a critical hub for the world’s most advanced semiconductor technology. The timing is vital as TSMC enters 2026 with a record capital expenditure budget of $52 billion to $56 billion, aimed at capturing a foundry market projected to grow 14% this year. With AI accelerator revenue reaching the high-teens as a percentage of total sales in 2025, TSMC is aggressively scaling its 3nm capacity to meet direct requests from cloud service providers. The Kumamoto facility is scheduled to begin mass production by the end of 2027, eventually contributing to a target where 20% of TSMC's advanced output is located outside of Taiwan by 2028.
Sources (12)
[PDF] Q4 2025 Taiwan Semiconductor Manufacturing Co Ltd Earnings ...TSMC CEO flags 3-nanometre chip production in Japan, investment reported at $17 billion | Reuters[News] TSMC’s Kumamoto 3nm Upgrade Highlights Overseas Output Reportedly Hitting 20% by 2028TSMC 3-nm Upgrade in Japan to Catch up With Demand - EE TimesTaiwan chip giant TSMC announces second Japan plant - Space DailyTSMC to make advanced AI semiconductors in Japan in boost for its ...TSMC Announces Production Location for AI Semiconductors | Manufacturing.netTSMC's Kumamoto Second Plant Halted Work: Upgrade to 4nm Technology - Semicon electronics
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