TOKYO -- Taiwan’s chipmaker TSMC said Thursday it will be manufacturing some of the world's most cutting-edge semiconductors in Japan to meet booming artificial intelligence-related demand, in a boost for the country's chipmaking ambitions.The decision by TSMC, the world’s largest contract chip maker, was a coup for Prime Minister Sanae Takaichi ahead of a general election on Sunday, where she hopes to secure the public’s mandate for her policies riding on high approval ratings.The announcement came while Takaichi was meeting with TSMC's CEO and Chairman, C.C.Wei, in Tokyo.“It is very meaningful from the perspective of Japanese economic security, and I would like the project to move forward as proposed, by all means," Takaichi said during the meeting.The advanced chips set to be made in Kumamoto will be used in AI, robotics and autonomous driving, sectors that Takaishi’s cabinet has designated as strategically important fields.TSMC said in a separate emailed statement that Wei believes Japan’s “forward-looking semiconductor policy will deliver significant benefits to the semiconductor industry.”Popular Reads'We will not rest': Savannah Guthrie and her siblings plead for mother's safe returnFeb 4, 10:47 PM1,000 samples sent for testing after possible biological lab found inside home: FBIFeb 2, 7:26 PMMinneapolis live updates: ICE arrest powers expanded, memo saysJan 31, 5:23 PM“There is a huge significance to have the world’s most advanced semiconductor factory in Japan from the perspective of economic security,” the Prime Minister’s Office said in a message posted on X on Thursday.Despite growing concerns over a potential AI-related bubble where massive investments may not pay off, TSMC’s Wei said last month he was confident the growing AI demand from its customers is “real.”Last month, TSMC said it plans to increase capital spending by up to nearly 40% this year as AI-related demand lifted its profits.
It plans to raise its capital spending for 2026 to $52 billion-$56 billion, up from last year's $40 billion.___Chan reported from Hong Kong.
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