February 9, 2026 /SemiMedia/ — TSMC is preparing to launch 3-nanometer chip production at its Kumamoto site in Japan, with total investment expected to rise to around $17 billion, according to a Japanese government source.

The move would give Japan its first domestic 3nm manufacturing capability, aimed at serving demand from AI data centers, autonomous driving systems and robotics.

TSMC had originally planned to produce 6nm to 12nm chips at its second Kumamoto fab, a project valued at about $12.2 billion. The revised plan upgrades the facility to advanced-node production, marking a shift toward higher-end logic chips.

A senior TSMC executive is expected to brief Japan’s prime minister on the project on Feb. 5, the source said. The government has backed the expansion as part of its broader push to strengthen supply security and rebuild local chipmaking capacity.

Japan currently has no commercial 3nm production. Officials said the project would not directly compete with Rapidus, which is developing 2nm technology in Hokkaido and targets mass production starting in fiscal 2027.

Tokyo has already approved subsidies of up to 732 billion yen for TSMC’s second Kumamoto plant in 2024. With the shift to 3nm, additional support is now under review.

Industry analysts said the expansion reinforces TSMC’s lead in advanced process technology while bringing Japan back into the high-end logic chip supply chain.