MONEY MASTER

Key Takeaways TSMC plans 3nm chip production in Japan , upgrading from earlier 7nm plans Investment may rise to ¥2.6 trillion , strengthening Kumamoto as a chip hub Political boost for PM Sanae Takaichi  ahead of a snap election Supports  AI demand and global supply-chain diversification Taiwan Semiconductor Manufacturing Co.  is planning to produce  advanced 3-nanometre chips in Japan , a significant upgrade from earlier plans and a political win for Prime Minister  Sanae Takaichi  as she pushes to rebuild the country’s semiconductor base. The world’s largest contract chipmaker intends to deploy cutting-edge technology at its  second wafer fabrication plant in Kumamoto , according to people familiar with the matter. That would mark a step up from the initial roadmap to manufacture  7nm chips by late 2027 . To support the expansion, TSMC is expected to raise its total investment in the project to  ¥2.6 trillion (US$17 billion) , Japanese medi...

The long-held belief that a weaker yen benefits Japanese stocks is unraveling as the correlation between the two diminishes due to diverging global monetary policies. Key Developments Topix Stagnation: Despite the yen’s volatility, the Topix Index has remained range-bound since its summer crash. The correlation coefficient between the yen and Topix is near zero, indicating negligible linkage. BOJ’s Policy Shift: The Bank of Japan (BOJ) shifted focus in May to curb inflation driven by a weak yen, rather than stimulating a virtuous cycle of wages and prices. Foreign investors have been net sellers of Japanese stocks since this shift. Impact of BOJ Hawkishness: A weaker yen now signals potential BOJ rate hikes, which depress stock valuations. The BOJ’s hawkish stance contrasts with expectations of rate cuts by the US Federal Reserve, creating further headwinds for Japanese equities. Changing Dynamics of the Japanese Economy Export Dependency Declines: Japan’s economy, long perceived as ...