TSMC's $17B Japan Chip Plant Will Produce Cutting-Edge 3-Nanometer Tech by 2028

Taiwan Semiconductor Manufacturing Company (TSMC) is set to build a cutting-edge chip plant in Japan. The facility, located in Kumamoto, will produce advanced 3-nanometer chips, marking a major expansion outside Taiwan. The Japanese government has officially confirmed the plans, with production expected to start in 2028.

The new plant, known as Fab 23, will be operated by JASM—a joint venture involving TSMC, Sony, Denso, and Toyota. TSMC holds the largest share at 86.5%, while Sony owns 6.0%, Denso 5.5%, and Toyota 2.0%. Originally planned for 6-nanometer production, the facility has now shifted focus to the more advanced N3 process or its variants.

The N3 node represents the latest breakthrough in semiconductor technology, with strong demand projected for years. TSMC has stated that transitioning to this process will require only minor adjustments to existing core exposure systems. Beyond Taiwan and the US, Japan will become the only other confirmed location for 3-nanometer chip manufacturing.

Construction costs for the Japanese plant remain at an estimated $17 billion. While TSMC has not revealed the exact types of chips to be made there, the facility aligns with the company's broader strategy, which includes a second 3-nanometer plant in Arizona, USA.

Production at the Kumamoto plant is scheduled to begin in 2028. The move strengthens Japan's role in global semiconductor manufacturing and reinforces TSMC's presence beyond Taiwan. The facility will contribute to meeting rising demand for next-generation chips in industries like automotive and electronics.