Fujitsu is pushing back into the chip business with its own AI processor, good news for TSMC and for Japan's hopes of catching up in AI hardware.

• Fujitsu plans to start selling its Monaka AI processor to the US and Asia as early as 2027.
• The chip grows out of the technology behind Fugaku, the supercomputer Fujitsu built with Japan's Riken institute.
• TSMC will manufacture it on its 2nm process, another big win for the Taiwanese chipmaker.
• Japanese firms mostly quit making processors years ago, leaving the market to Intel and other US companies, so this is a comeback attempt.
• Fujitsu has already signed a supply deal with US server maker Supermicro and is courting big American cloud providers.

Outlook: Fujitsu will also sell AI servers built around the chip — two dozen banks and telecom firms are already testing them and talks are underway with more than 40 companies — while an even more advanced 1.4nm version due in 2029 may go to Japan's own Rapidus.