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First modification: 02/05/2026 - 15:24

Taipei and Tokyo strengthen their strategic cooperation in semiconductors, while seeking more ground in the competitive race of artificial intelligence (AI). TSMC announced that it will produce advanced 3-nanometer chips at its second plant in Kumamoto, with support from the Japanese government.

Asia once again finds itself at the center of the global technology board with the strategic rapprochement between Taiwan and Japan, two actors determined not to be left behind in the race for leadership in artificial intelligence, while the United States advances by leaps and bounds and Europe seeks not to lose its place at all costs.

The axis of this alliance is TSMC, the largest semiconductor manufacturer in the world, which together with the Japanese Government presented an ambitious plan to produce advanced 3-nanometer chips in Japanese territory, a critical technology for the development of AI, robotics and new generation vehicles.

The announcement was made in Tokyo during a high-level meeting attended by Japanese Prime Minister Sanae Takaichi and TSMC CEO C.C. Wei.

There it was confirmed that the company's second plant in Kumamoto prefecture, in the south of the country, currently under construction in the city of Kikuyo, will not only manufacture semiconductors between 6 and 12 nanometers, as initially planned, but will also incorporate mass production of 3 nanometer chips, an unprecedented technological leap for Japan.

"Establishing a cutting-edge factory at the 3 nanometer level in Japan, which until now has been concentrated in Taiwan, is significant from the perspective of strengthening the global supply chain of strategically important semiconductors and reinforcing the economic security of our nation, so I welcome a development along the lines of this proposal," Japanese Prime Minister Sanae Takaichi stressed to the local press.

The investment associated with the project could reach 2.6 trillion yen, equivalent to about 17 billion dollars, far exceeding the initial estimate of 1.9 trillion yen.

The Japanese Government, which has already subsidized the development of TSMC's productive capacity on the island of Kyushu, is now studying additional support for this new phase of the plan, according to the 'Yomiuri' newspaper.

Faster and more efficient chips

Reducing the line width to 3 nanometers will make it possible to manufacture smaller, more powerful and efficient chips, capable of processing large volumes of data at higher speeds and with lower energy consumption.

These characteristics make them indispensable components for artificial intelligence data centers, advanced industrial automation systems, electric and autonomous vehicles, as well as next-generation robotics applications.

During the meeting, Wei highlighted that the new plant “will form a foundation” for the development of artificial intelligence in Japan and thanked the “continuous support of the central government and local authorities.”

The manager also highlighted that the cutting-edge industrial policy promoted by Tokyo will bring “important benefits” to the semiconductor industry as a whole, in a context of growing global competition and geopolitical tensions around technological supply chains.

Don't get left behind in the race

Although the announcement has a strong local component, its impact is clearly global. Demand for advanced chips has soared as big tech companies accelerate their investments in artificial intelligence, and production capacity remains limited.

Precisely, one of the central objectives of these agreements is to alleviate the “hunger” for semiconductors that the sector faces and reduce dependence on a few manufacturing centers concentrated in East Asia.

The concern is such that on Wednesday, February 4, the Japanese company Nintendo, mother of video games like Super Mario Bros, plummeted 11% in the stock market due to the fear of its investors that the company will not be able to have enough chips to continue developing its consoles.

The uncertainty generated a massive sell-off in stocks, even though the company reported solid quarterly profits following its successful strategy to sell the Nintendo Switch 2 console.

With Reuters and AFP

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