TSMC to Build $17 Billion 3-Nanometer Chip Plant in Japan by 2028

Taiwan Semiconductor Manufacturing Company (TSMC) has announced plans to build a state-of-the-art chip plant in Japan. The facility, known as Fab 23, will produce advanced 3-nanometer chips—a significant upgrade from the originally planned 6-nanometer process. Construction is set to begin in 2028, with an estimated cost of $17 billion.

The new plant will be operated by JASM, a joint venture involving TSMC, Sony, Denso, and Toyota. Once operational, ownership will be split among the partners: TSMC will hold 86.5%, Sony 6.0%, Denso 5.5%, and Toyota 2.0%. This follows earlier collaborations that led to the construction of JASM I and II factories in Kumamoto, where JASM I already handles mature and mid-range chip production, while JASM II focuses on 6/7nm technology.

The Japanese government has confirmed TSMC's latest plans for the facility. Substantial subsidies from Tokyo have been key in supporting these projects, aiming to strengthen Japan's semiconductor manufacturing capabilities. The shift to 3-nanometer technology marks a major leap forward for the country's chip industry.

Production at Fab 23 is expected to start in 2028, with the plant becoming a cornerstone of Japan's advanced semiconductor sector. The $17 billion investment underscores the growing partnership between TSMC and Japanese firms, reinforcing local chip production. Once completed, the facility will play a crucial role in meeting global demand for cutting-edge 3-nanometer chips.