TSMC Japan plan for advanced chips seen as hedge against pressure from US, China

South China Morning PostCenter-RightEN 2 min read 100% complete by Ralph JenningsFebruary 5, 2026 at 01:00 PM

AI Summary

short article 2 min

TSMC plans to produce advanced 3nm chips at its plant in Kumamoto, Japan. This move is seen as a strategic hedge against potential geopolitical risks, including US tariffs and the possibility of a Chinese blockade of Taiwan, where most of TSMC's fabs are located. The expansion in Japan will diversify TSMC's production and reduce its vulnerability to these external pressures. The Kumamoto plant will also provide Japanese companies like Sony and Toyota with local access to advanced chips needed for artificial intelligence applications. TSMC's CEO announced the plan after meeting with the Japanese Prime Minister.

Key Entities & Roles

Key Player Opposition Context

Kaohsiung 40% Toyota 50% Sony 50% Sanae Takaichi 50% C C Wei 60% Donald Trump 60% Kumamoto ×260% China ×270% United States ×370% Japan ×380% Taiwan ×380% Taiwan Semiconductor Manufacturing Company ×590%

Keywords

tsmc 100% advanced chips 90% chip production 80% tariff threats 70% geopolitical pressures 70% taiwan 70% japan 70% 3 nm process 60% silicon shield 50% supply chain 40%