Japan officially approved TSMC’s plans to build the country’s first 3-nanometer chip facility. The plant will be located in Kumamoto Prefecture as part of a TSMC-led joint venture. This expansion addresses surging demand for advanced semiconductors used in AI products.
TSMC recently reported record profits for the sixth consecutive quarter. Strong demand in artificial intelligence and high-performance computing sectors drove these results.
Analysts remain bullish on the company, with several raising their price targets. However, the stock faces pressure from concerns regarding future margins and heavy capital expenditures for next-generation technologies.