The Taiwan Ministry of Economic Affairs (MOEA) confirmed on April 4, 2026, the final regulatory approval for Taiwan Semiconductor Manufacturing Company (TSMC) to upgrade its second manufacturing facility in Kumamoto, Japan, to 3-nanometer (3nm) process technology. The decision, issued through the MOEA’s Department of Investment Review, authorizes a significant technical shift for the plant, which is currently under construction. Originally designed to produce chips in the 6-nanometer to 12-nanometer range, the facility will now serve as Japan’s first domestic production base for cutting-edge 3nm logic semiconductors.
According to the official filing, the second Kumamoto plant is scheduled to begin equipment installation and commence mass production in 2028. The facility is projected to have a monthly production capacity of 15,000 12-inch wafers. This capacity will be managed by Japan Advanced Semiconductor Manufacturing (JASM), a TSMC-led subsidiary that includes minority stakeholders Sony Semiconductor Solutions, DENSO Corporation, and Toyota Motor Corporation. Total investment for the JASM complex, which includes both the first and second fabrication units, is now reported to exceed $20 billion.
The strategic shift to 3nm technology follows a high-level meeting in February 2026 between TSMC Chief Executive Officer C.C. Wei and Japanese Prime Minister Sanae Takaichi. During the meeting, Wei identified the explosive growth in demand for high-performance computing and artificial intelligence (AI) as the primary driver for the upgrade. The Japanese government has provided substantial financial backing for the project, including a subsidy commitment of up to 732 billion yen for the second facility to ensure the domestic availability of advanced silicon.
In a related financial disclosure on April 4, the MOEA also approved TSMC’s application to inject an additional $30 billion into its financial arm, TSMC Global Ltd. The company intends to use these funds for investment in U.S. dollar-denominated time deposits and U.S. Treasuries. This move is aimed at optimizing interest yields and managing foreign exchange hedging costs as the company continues its multi-billion-dollar global expansion across Japan, the United States, and Europe.
The first Kumamoto fab, which reached mass production in late 2024, continues to focus on mature nodes including 12nm, 16nm, 22nm, and 28nm for the automotive and industrial sectors. The addition of 3nm capabilities at the second site is expected to position the Kumamoto hub as a critical asset in the global AI hardware supply chain. Construction remains on schedule, with the installation of advanced extreme ultraviolet (EUV) lithography systems expected to begin in late 2027.