Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE:TSM) plans to begin equipment installation and mass production of advanced 3-nanometer chips at its second Japan facility in 2028, according to a Taiwanese government filing.



CEO C.C. Wei said in February the company aims to produce 3nm chips at the plant following a meeting with Japan's Prime Minister Sanae Takaichi.



The second fab is expected to have a monthly capacity of 15,000 12-inch wafers using 3nm technology, marking a shift from earlier plans focused on mature nodes, Reuters reported on Wednesday.



In 2024, Taiwan Semiconductor said total investment in its first and second Japan fabs would exceed $20 billion.



A Yomiuri report estimated the second plant could cost about $17 billion, though the company has not confirmed the figure.



The first Japan fab began volume production in late 2024.



<h2>Technical Analysis</h2>



TSM is trading 0.3% above its 20-day SMA, but 1.9% below its 50-day SMA, while still sitting 5.5% above its 100-day SMA—suggesting the longer-term uptrend is intact even as the intermediate trend is being tested.



Shares have gained 100.40% over the past 12 months, and the stock is closer to its 52-week highs than its lows, trading in the $134.25 to $390.20 range.



RSI is at 47.74, which sits in neutral territory and suggests consolidation rather than a strong trend day. Meanwhile, MACD is at -5.9455 and remains below its signal line at -4.3635, keeping bearish pressure in place until that spread starts to narrow.



The combination of RSI in the 30–50 range (47.74) and bearish MACD suggests mixed momentum.



<ul>
<li>Key Resistance: $380.00</li>



<li>Key Support: $332.00</li>
</ul>



<h2>Earnings &amp; Analyst Outlook</h2>



Looking further out, the next major catalyst for the stock arrives with the April 16, 2026 (estimated) earnings report.



<ul>
<li>EPS Estimate: $3.27 (Up from $2.12 YoY)</li>



<li>Revenue Estimate: $35.40 Billion (Up from $25.53 Billion YoY)</li>



<li>Valuation: P/E of 32.7x (Indicates premium valuation relative to peers)</li>
</ul>



Analyst Consensus &amp; Recent Actions: The stock carries a Buy Rating with an average price target of $401.67. Recent analyst moves include:



<ul>
<li>DA Davidson: Initiated with Buy (Target $450.00) (February 13)</li>



<li>Barclays: Overweight (Raises Target to $450.00) (January 16)</li>



<li>TD Cowen: Hold (Raises Target to $370.00) (January 16)</li>
</ul>



<h2>Top ETF Exposure</h2>



<ul>
<li>Invesco FTSE RAFI Emerging Markets ETF (NYSE:PXH): 6.23% Weight</li>



<li>Dan IVES Wedbush AI Revolution ETF (NYSE:IVES): 5.81% Weight</li>



<li>Harbor International Compounders ETF (NYSE:OSEA): 6.88% Weight</li>
</ul>



Significance: Because TSM carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.



<h2>Price Action</h2>



TSM Price Action: Taiwan Semiconductor shares were up 1.59% at $343.31 during premarket trading on Wednesday, according to Benzinga Pro data.



Photo via Shutterstock

TSMZ

TSMU

TSMG

SOXX

TSMX

SOXL

Taiwan Semiconductor Manufacturing Co. plans to start 3nm chip production at its second facility in Japan by 2028, with a monthly capacity of 15,000 12-inch wafers. The investment in both Japan fabs is expected to exceed $20 billion. TSM shares have gained 100.40% over the past year, trading at $343.31, with a Buy rating and an average price target of $401.67 from analysts. The next earnings report is estimated for April 16, 2026, with an EPS estimate of $3.27 and revenue of $35.40 billion.

Taiwan Semiconductor Eyes Cutting-Edge 3nm Production In Japan By 2028