TSMC Japan's Second Fab to Produce 3nm Chips by 2028

Taiwan Semiconductor Manufacturing Company (TSMC), the world's leading contract chipmaker, has confirmed plans to begin equipment installation and mass production of 3-nanometre wafers at its second fabrication plant in Japan by 2028, according to a recent Taiwanese government filing.

TSMC CEO C.C. Wei first announced this milestone during a February meeting with Japanese Prime Minister Sanae Takaichi, signaling a significant upgrade to the company's semiconductor manufacturing strategy in Japan. The revised production plan outlines a monthly output capacity of 15,000 twelve-inch wafers using cutting-edge 3nm process technology — a major leap forward from the company's earlier roadmap for the facility.

Previously, TSMC's Japan expansion focused exclusively on less advanced chip technologies. Back in 2024, the company projected that combined investment across its first and second Japanese fabs would surpass $20 billion, with a joint monthly capacity of 100,000 twelve-inch wafers produced using older process nodes ranging from 40nm down to 6/7nm. The shift toward 3nm production marks a clear strategic pivot toward next-generation semiconductor manufacturing on Japanese soil.

Japanese media outlet Yomiuri reported that investment in the second fab could reach approximately $17 billion, though TSMC has yet to officially confirm the figure. Meanwhile, the company's first Japan facility — located in Kumamoto — already achieved volume production in late 2024, demonstrating strong operational momentum.

TSMC established its Japan subsidiary, Japan Advanced Semiconductor Manufacturing (JASM), in 2021 with backing from Sony Semiconductor Solutions. The venture has since grown to include minority stakes held by automotive giants DENSO Corporation and Toyota Motor Corporation, reflecting Japan's broader push to strengthen domestic semiconductor supply chains amid ongoing global chip demand.

The 2028 target positions TSMC Japan as a key player in advanced chip production across Asia.