TSMC plans US$17 billion investment in three-nanometre chip production in Japan: report

[TOKYO] Taiwan Semiconductor Manufacturing Company (TSMC) plans to mass produce advanced three-nanometre chips in Kumamoto in southern Japan with investment totalling US$17 billion, Japanese newspaper Yomiuri reported on Thursday (Feb 5).

Japan’s government, which has subsidised Taiwan’s leading chipmaker to build out capacity in Kyushu, is considering additional support for the new investment plan, Yomiuri reported.

TSMC had planned to invest US$12.2 billion on six to 12 nanometre chipmaking capacity at its second fab in Kyushu but will discuss changes to the plan with Japan’s government, Yomiuri reported.

TSMC did not immediately respond to a request for comment.

Japan is also heavily subsidising homegrown foundry venture Rapidus, which will produce cutting-edge chips on the northern island of Hokkaido.

The government has determined the two companies’ chips will have different uses and will not be in competition, Yomiuri reported.

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Securing access to chips, which are critical for electronics, automotive and defence industries, has become a priority for governments around the world. REUTERS