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TSMC reportedly plans second Kumamoto fab as a 3nm facility with 17 billion dollar investment
Thursday, January 15, 2026 at 09:47 AM
TSMC is reported to be planning a second semiconductor fabrication plant in Kumamoto, Japan, specifically targeting the 3nm process node with an estimated capital expenditure of 17 billion USD.
Context
TSMC is reportedly set to invest approximately $17 billion to build its second fabrication facility in Kumamoto, Japan, as a cutting-edge 3nm node plant. This represents a significant technological upgrade and a strategic pivot from previous plans to produce older 6nm to 12nm chips at the site, which originally carried a lower capital expenditure estimate of $12.2 billion. The Japanese government is currently considering additional subsidies to support this shift toward more advanced manufacturing capabilities.
This expansion is a critical development for the global semiconductor supply chain, as it brings TSMC’s most advanced commercially available technology to Japan to support high-performance computing and AI applications. Construction of the second fab has already commenced, following the successful mass production start of the first Kumamoto facility in late 2024. The upgrade ensures that Japan remains a key hub for specialized production, catering to the massive regional demand for autonomous driving and next-generation electronics.
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