Taiwan’s TSMC, the world’s largest contract computer chip maker, has announced it will be manufacturing advanced 3-nanometer semiconductors in Japan to meet booming AI demand.
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Wei speaks during a meeting with Japan's Prime Minister Sanae Takaichi at the prime minister's office in Tokyo, Thursday, Feb. 5, 2026. Japanese Prime Minister Sanae Takaichi, right, reacts as Taiwan Semiconductor Manufacturing Company's Chairman C.C. Wei, left, brings out a book written by Takaichi during a meeting at the prime minister's office in Tokyo, Thursday, Feb. 5, 2026. Japan's Prime Minister Sanae Takaichi, second right, and Chief Cabinet Secretary Minoru Kihara, right, pose for a photo with Taiwan Semiconductor Manufacturing Company's Chairman C.C. Wei, second left, and Vice President Jonathan Lee at the beginning of their meeting at the prime minister's office in Tokyo, Thursday, Feb. 5, 2026. Japan's Prime Minister Sanae Takaichi speaks during a meeting with Taiwan Semiconductor Manufacturing Company's Chairman C.C. Wei at the prime minister's office in Tokyo, Thursday, Feb. 5, 2026. said Thursday it will be manufacturing some of the world's most cutting-edge semiconductors in Japan to meet booming artificial intelligence-related demand, in a boost for the country's chipmakingTaiwan Semiconductor Manufacturing Corp., a major chip supplier to companies such as Nvidia and Apple, said Thursday it plans to make 3-nanometer semiconductors — advanced chips that are used in areas such as AI products and smartphones — at its second factory in Japan’s Kumamoto Prefecture, which is under construction.The decision by TSMC, the world’s largest contract chip maker, was a coup for Prime Minister Sanae Takaichi ahead of a general election on Sunday, where she hopes to secure the public’s mandate for her policies riding on high approval ratings.“It is very meaningful from the perspective of Japanese economic security, and I would like the project to move forward as proposed, by all means," Takaichi said during the meeting. The advanced chips set to be made in Kumamoto will be used in AI, robotics and autonomous driving, sectors that Takaishi’s cabinet has designated as strategically important fields. TSMC's first Kumamoto plant started mass production in late 2024 and makes less advanced chips. The company also is building new plants in Arizona in the U.S. to create a fabrication plant cluster and meet growing demand from customers building on the global AI frenzy. TSMC said in a separate emailed statement that Wei believes Japan’s “forward-looking semiconductor policy will deliver significant benefits to the semiconductor industry.”“There is a huge significance to have the world’s most advanced semiconductor factory in Japan from the perspective of economic security,” the Prime Minister’s Office said in a message posted on X on Thursday. Despite growing concerns over a potential AI-related bubble where massive investments may not pay off, TSMC’s Wei said last month he was confident the growing AI demand from its customers is “real.” Last month, TSMC said it plans to increase capital spending by up to nearly 40% this year as AI-related demand lifted its profits. It plans toCopyright 2026 The Associated Press. All rights reserved. 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