New Delhi, Feb. 6 -- 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.

Taiwan Semiconductor Manufacturing Corp., a major chip supplier to companies such as Nvidia and Apple, said Thursday it plans to make 3-nanometer semiconductors - advanced chips that are used in areas such as AI products and smartphones - at its second factory in Japan's Kumamoto Prefecture, which is under construction.

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 secur...