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

Taiwan Semiconductor Manufacturing Company (TSMC) is building a state-of-the-art chip plant in Japan. The facility, located in Kumamoto Prefecture, will produce advanced 3-nanometre chips—a major leap from the initially planned 6-nanometre process. The Japanese government has confirmed the project, which is set to strengthen the country's semiconductor sector.

The new plant, known as Fab 23, is being constructed under the joint venture Japan Advanced Semiconductor Manufacturing (JASM). TSMC holds an 86.5% stake, with partners Sony, Denso, and Toyota owning smaller shares. The factory will operate alongside two existing JASM facilities in Kumamoto: JASM I, already producing mature and mid-range chips, and JASM II, which will introduce 6/7-nanometre technology.

Production at the advanced plant is scheduled to begin in 2028. The shift to the N3 process—currently the most advanced semiconductor technology—is expected to be smooth, requiring only adjustments to existing ASML EUV lithography machines. The total cost of the project has been estimated at around $17 billion, with significant support from Japanese government subsidies.

The decision to upgrade to the N3 node reflects strong market demand for cutting-edge chips. This move aligns with Japan's broader push to revive its semiconductor industry through strategic partnerships and heavy investment.

Once operational, the Kumamoto plant will position Japan as a key player in next-generation chip manufacturing. The facility's focus on N3 technology ensures long-term relevance in a competitive global market. TSMC's investment, backed by local partners and government funding, marks a major step in Japan's semiconductor revival.