Japanese PM backs TSMC's plan for advanced chip production amid tensions with China
Tokyo signals strong political support for advanced semiconductor production at home as technology, security and geopolitics collide.
The chief executive of Taiwan Semiconductor Manufacturing Co. (TSMC) told Japanese Prime Minister Sanae Takaichi on Thursday that the company plans to mass-produce semiconductors using 3-nanometre technology in Kumamoto Prefecture, a milestone that would mark the first such production in Japan.
According to Kyodo News, Takaichi welcomed the plan, calling it an upgrade from TSMC’s original proposal to use 6-nanometre technology, and voiced strong support for the project during their meeting at her office in Tokyo.
“It is very encouraging. I would like you to proceed as you have proposed,” Takaichi told TSMC Chief Executive Officer C.C. Wei, adding that the government would “closely discuss and cooperate.”
The Japanese government views domestic semiconductor production as vital to economic security and has also been backing local chip venture Rapidus Corp., which aims to mass-produce 2-nanometre chips from the second half of 2027.
Wei said the 3-nanometre chips will be produced at TSMC’s second plant in Kumamoto Prefecture, which is currently under construction.
“The 3-nanometre technology today is the most advanced process used by AI and smartphone products,” Wei said at the start of the meeting, which was open to the media.
He added that the project would contribute to regional growth and help lay the groundwork for Japan’s artificial intelligence industry.
Semiconductors made with 3-nanometer technology offer higher processing power and improved energy efficiency and can be used in applications ranging from advanced smartphones to self-driving vehicles.
TSMC’s first plant in Kumamoto began mass production of chips using 12- to 28-nanometre technology in December 2024.
Tension with China over Taiwan
The high-level talks come against a backdrop of strained China-Japan relations, following remarks by Takaichi in November that a potential Chinese attack on Taiwan could pose a “survival-threatening situation” for Japan and potentially justify the exercise of collective self-defence.
Beijing sharply criticised those comments and later advised Chinese citizens against traveling to Japan, while reinstating a ban on Japanese seafood imports.
For Tokyo, closer ties with TSMC are seen as both an economic opportunity and a strategic hedge, as global powers race to secure access to the most advanced chips that underpin everything from artificial intelligence to national defence.