"Japan-developed CPU..." plus the server itself (parts, power supplies, case, etc.) integrated, developed and manufactured in Japan. It sounds like they're weasel-wording it a bit, but I don't think the CPU itself is manufactured in Japan, only "developed."
Combining info from https://news.ycombinator.com/item?id=49740907 and https://news.ycombinator.com/item?id=49740901, it seems that they're relying on TSMC for the first batch and are planning to move production to JASM once that's ready?
Yep. I'd say the CPU is manufactured outside, and the rest of the server in Japan.