TAIPEI: TSMC plans to mass produce advanced 3-nanometre chips in Kumamoto in southern Japan, TSMC CEO CC Wei said on Thursday (Feb 5), an investment local media reported was worth US$17 billion as the Taiwanese firm seeks to meet soaring demand for artificial intelligence (AI) chips.
TSMC, the world’s largest contract chipmaker and a key supplier of AI chips to companies such as Nvidia, currently produces its most advanced chips in Taiwan. Previous plans for Japan had focused on less advanced technologies.
The announcement puts Japan on the map as the newest location for the production of the high-end 3-nanometre chips, which are widely used in high-performance computing and AI servers. The company plans to begin producing these chips at its second fab in Arizona in 2027.
The boom in AI has helped TSMC, Asia’s most valuable listed company, outshine its rivals.
“We believe this fab will further contribute to the local economic growth and, most importantly, form a foundation for Japan’s AI business,” said Wei in Tokyo at a meeting with Japan’s Prime Minister Sanae Takaichi.
Wei added that the company was also in discussions with Japanese customers and partners on further collaboration across multiple areas important to the AI industry.
Takaichi said 3-nanometre chips hold great significance for economic security.
TSMC told Reuters in an email that the company is now planning to use 3nm process technology for production at its second fab in Japan to meet strong demand driven by AI.
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