Japan’s Ministry of Economy, Trade and Industry approved TSMC’s proposal for the country’s first 3-nanometer fabrication plant. The TSMC-led joint venture, Japan Advanced Semiconductor Manufacturing, will manage the facility in Kumamoto prefecture.

The project shifted to 3nm technology to address surging AI chip demand. This replaces the originally planned 6nm and 12nm production lines. Initial capacity is set at 6,000 wafers per month. Operations are scheduled to begin in December 2028.

The government also adjusted plans for the first Kumamoto plant. This facility will now focus on producing 22nm to 28nm technology.