TSMC to expand Japan plant with $17B investment, shifting to 3nm chip production amid global supply chain efforts.

TSMC plans a $17 billion expansion of its Kumamoto, Japan, facility to produce advanced 3-nanometer chips, a shift from earlier plans for 6- to 12-nanometer production, according to Japan’s Yomiuri newspaper. The move, supported by Tokyo’s potential additional subsidies, aims to boost Japan’s semiconductor capabilities amid global demand for AI and defense-related chips. TSMC’s project complements Japan’s support for domestic chipmaker Rapidus, which targets different market segments. The expansion reflects broader efforts by governments to secure critical chip supply chains.