TSMC to Produce 3nm Chips at Second Japan Plant in $23 Billion Expansion
Taiwan Semiconductor Manufacturing Co., Ltd. (TWSE:2330) plans to manufacture advanced 3-nanometre chips at the second Japanese factory of its subsidiary, Japan Advanced Semiconductor Manufacturing. Total equipment investment for the facility is expected to exceed $23 billion, marking a major step in expanding the chipmaker's overseas production capabilities. Shares of the company closed down 0.62% at 2,405 TWD.
The investment comes as growing demand for artificial intelligence applications continues to fuel strong performance across the chip sector. The company recently reported substantial financial growth for the July-September quarter, with net profit rising 68.7% year-on-year to $23.86 billion and revenue climbing 50.9% to $46.72 billion. Establishing advanced manufacturing capacity in Japan helps the firm serve both regional and global customers seeking cutting-edge processor technologies.
Moving forward, investors should monitor the rollout schedule, as production and investment plans will be implemented in phases tied to market demand and reliant on continued Japanese government support. Additionally, TSMC established another joint venture in Kumamoto with Sony Semiconductor Solutions to manufacture next-generation image sensors, with commercial production targeted to begin in 2029.
Key points
- Taiwan Semiconductor Manufacturing Co., Ltd. (TWSE:2330) plans to produce 3nm chips at its subsidiary's second plant in Japan.
- Total equipment investment for the JASM facility is expected to exceed $23 billion.
- TSMC reported third-quarter net profit of $23.86 billion, up 68.7% year-on-year, as revenue rose 50.9%.
- Production will be rolled out in phases based on market demand and continued government support.
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How we writeDisclaimerQuestions and answers
How much is TSMC investing in its second Japan factory?
TSMC expects total equipment investment for the second factory of its Japan subsidiary to exceed $23 billion. Production and capital expenditure will be implemented in phases based on market demand and government support.
Why is TSMC expanding 3nm manufacturing to Japan?
The expansion aims to address strong global demand for advanced semiconductor technology driven by artificial intelligence, while supplying cutting-edge chips to customers in Japan and worldwide.
What were TSMC's recent quarter financial results?
In the July-September quarter, TSMC posted $46.72 billion in revenue, up 50.9% year-on-year. Net profit grew 68.7% over the same period to reach $23.86 billion.