TSMC Pivot: 3nm Logic Chips to Replace 6nm Plans at Second Japan Fab

Feb 6, 2026 — In a major strategic realignment, Taiwan Semiconductor Manufacturing Co. (TSMC) has confirmed it will shift the production focus of its second Japanese manufacturing facility from 6nm nodes to advanced 3nm process technology.

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The decision follows a high-level meeting between TSMC CEO C.C. Wei and Japanese Prime Minister Sanae Takaichi, where the move was hailed as a "triumph" for Japan’s economic security and goal of becoming a global AI hub.

Strategic Shift to Advanced Nodes.

While the second Kumamoto fab (operated under the JASM joint venture) was originally slated for 6nm and 7nm production, a decline in demand for automotive-grade legacy chips and a massive spike in Artificial Intelligence (AI) and High-Performance Computing (HPC) requirements triggered the upgrade.

Production Targets: The fab will now produce 3nm chips—the current industry benchmark for power efficiency and performance—used in high-end smartphones, data center GPUs, and autonomous driving systems.

  • Timeline: Despite the technology shift, construction remains on track. Operations are expected to commence in late 2027.

  • Economic and Financial Impact

    The upgrade significantly increases the scale of the project:

    • Increased Investment: Total capital expenditure for the second fab has risen to approximately $17 billion (¥2.6 trillion), up from the initial $12.2 billion estimate.

    • Government Subsidies: The Japanese Ministry of Economy, Trade and Industry (METI) is reportedly evaluating additional financial support beyond the ¥732 billion already committed, viewing the 3nm capability as vital to Japan’s "Silicon Renaissance".

    • Global Footprint and the "Taiwan-Centric" Model

      Industry analysts at TrendForce note that this move will push TSMC's overseas capacity to nearly 20% of its total output by 2028. However, the company maintains that its most cutting-edge research and "next-generation" nodes (such as 2nm and beyond) will remain concentrated in Taiwan to ensure domestic technological leadership.


Sources: Taipei times, Focus Taiwan and CommonWeath Magazine.

Diana Tai