TSMC ramps up 3nm and 2nm chip production across Japan, Taiwan and Arizona

Taiwan Semiconductor Manufacturing Company (TSMC) has raised its investment budget to between $60 billion and $64 billion to accelerate the rollout of 3‑nanometer and 2‑nanometer process technologies. The plan includes three new 3‑nm fabs in Taiwan, Arizona (USA) and Kumamoto (Japan), as well as upgrades to existing 5‑nm lines to add further 3‑nm capacity.

TSMC Japan president Makoto Onodera said the Japanese design, R&D and manufacturing sites will play a key role in the company’s global AI‑driven strategy, emphasizing the need for transistor miniaturisation, advanced 3‑D integration and silicon‑photonics while noting power efficiency as the industry’s biggest challenge. The expansion has also drawn attention from investors, with the VanEck Semiconductor UCITS ETF showing a modest price rise despite broader market volatility.