Taiwan Semiconductor Manufacturing Co. pushed back construction of its second Japanese fabrication plant until the second half of 2025, citing traffic congestion that has frustrated local residents since the first facility began operations.
TSMC Japan president Makoto Onodera announced the revised timeline during a technology symposium in Yokohama, marking another delay for the chipmaker’s ambitious expansion in the region. The facility was originally scheduled to break ground in the first quarter of 2025.
TSMC Chairman C.C. Wei previously attributed the postponement to traffic problems, noting that what used to be a 10-15 minute drive now takes almost an hour. The congestion stems from the first Kumamoto plant, which began mass production in late 2024.
The company disclosed strong performance metrics for its Japan operations during the forum. Revenue from the region exceeded $4 billion in 2024, representing approximately 4% of TSMC’s total sales, while wafer shipments surpassed 1.49 million 12-inch equivalent units, accounting for roughly 10% of global volume.
The second facility will produce Japan’s most advanced 6-nanometer semiconductors, while the operational first plant focuses on mature 12-nanometer to 28-nanometer processes. Combined, both facilities will deliver monthly capacity exceeding 100,000 wafers.
The ¥2.96 trillion ($18.8 billion) investment includes ¥1.2 trillion ($7.6 billion) in Japanese government subsidies, reflecting Tokyo’s push to secure domestic semiconductor supply chains. Partners Sony, Toyota Motor and automotive parts supplier Denso have also invested in the venture.
Despite the construction delay, TSMC maintains that the second fab will begin operations by late 2027 as originally planned.
