Takaichi welcomes TSMC's advanced-chip plan in Kumamoto

The chief executive of Taiwan Semiconductor Manufacturing Co. told Japanese Prime Minister Sanae Takaichi on Thursday of the company's plan to mass-produce semiconductors using 3-nanometer technology in Kumamoto Prefecture, in what would be a first in Japan. Takaichi welcomed the move, an upgrade from the company's initially planned use of 6-nanometer technology, telling C.C. Wei at her office in Tokyo, "It is very encouraging. I would like you to proceed as you have proposed." She also promised to "closely discuss and cooperate." The government sees domestic chip output as contributing to economic security and supports Japanese chip venture Rapidus Corp., which plans to mass-produce 2-nanometer chips from the second half of 2027. Wei said the 3-namometer chips will be produced at its second plant in Kumamoto Prefecture, southwestern Japan, which is currently under construction. "The 3-nanometer technology today is the most advanced process used by AI and smartphone products," Wei told Takaichi at the start of the meeting that was open to the media, referring to artificial intelligence. He added he believes the factory "will further contribute to the local economic growth and most importantly, form a foundation for Japan's AI business." Semiconductors employing 3-nanometer technology, with high processing power and improved energy efficiency, can also be used to power self-driving vehicles. A nanometer is a billionth of a meter. The first plant in Kumamoto commenced mass production of chips using 12 to 28 nanometer technology in December 2024. Wei also met with Economy, Trade and Industry Minister Ryosei Akazawa later in the day and expressed gratitude for the support provided by the Japanese government, saying the first plant in Kumamoto has been "realized and successful" because of the state's aid. Before the envisioned change in output at TSMC's second plant in Kumamoto, investments for the factory were expected to reach $13.9 billion, with the Japanese government having decided to offer subsidies of up to 732 billion yen ($4.7 billion).