TSMC’s Kumamoto 3nm Fab Wins Subsidy Approval

According to Japan’s Ministry of Economy, Trade and Industry (METI), the government has approved Taiwan Semiconductor Manufacturing Company (TSMC)’s plan to produce advanced 3-nanometer (3nm) semiconductors at its second fab in Kumamoto Prefecture, Kyushu. The facility will mark the first time 3nm chips are manufactured in Japan.

TSMC originally planned to produce chips using 6nm and 12nm process technologies at its second Kumamoto fab. However, the company announced in February that it would switch the facility’s production plan to 3nm technology to meet growing demand for more advanced semiconductors.

According to Japan’s Asahi Shimbun, construction of the second Kumamoto fab is ongoing next to TSMC’s first factory, which is already operational. Under the original plan, the second facility was expected to manufacture semiconductors using process nodes ranging from 6nm to 12nm, with a monthly production capacity of 48,000 wafers, alongside plans for 40nm chips. Under the revised plan, the facility will initially produce 3nm chips at a monthly capacity of 6,000 wafers. METI said the significant reduction in planned output reflects the higher performance and greater complexity of the advanced products.

The approval covers the first phase of the second Kumamoto fab. TSMC intends to expand production capacity in the future with additional support from the Japanese government.

METI has also approved changes to the production plan for TSMC’s first Kumamoto fab. The facility was originally scheduled to manufacture 55,000 wafers per month using 22nm to 28nm and 12nm to 16nm process technologies. Under the revised plan, production of 12nm to 16nm chips will be discontinued, while monthly output of 22nm to 28nm semiconductors will be adjusted to 45,000 wafers.

The production changes reflect TSMC’s assessment of rising demand for artificial intelligence (AI) chips and the need for more advanced semiconductor technologies. As AI computing requirements continue to grow, demand for high-performance chips is prompting manufacturers to adjust their production strategies and invest in advanced process nodes.

Separately, according to Nikkei, METI has also approved TSMC’s planned new factory producing advanced 3nm semiconductors as eligible for government subsidies, further supporting Japan’s efforts to strengthen its domestic semiconductor manufacturing capabilities.