Taiwan Semiconductor Manufacturing Co. has postponed groundbreaking on its second Kumamoto plant to later in 2025, stepping back from earlier plans to begin construction in the first quarter. The company’s Japan subsidiary (JASM) still expects mass production at the facility to start by the end of 2027 as originally scheduled, producing Japan’s most advanced 6-nanometer semiconductors.
TSMC insisted its overall plans for the Japanese expansion “remain unchanged,” but industry analysts point to strategic considerations behind the delay. The chipmaker appears to be prioritizing its American operations, where sources indicate TSMC may accelerate plans for a third fab in Arizona, with groundbreaking expected in June.
The shift reflects changing customer dynamics, as Japanese automotive clients increasingly express interest in US-based production. This aligns with TSMC’s flexibility in allocating resources amid ongoing global semiconductor market fluctuations.
TSMC’s first Kumamoto facility began mass production in December 2024, primarily serving Sony Semiconductor Solutions and Denso with chips for image sensors and automotive applications. The two Kumamoto plants represent a combined investment exceeding ¥3.1 trillion (US$20 billion), with substantial Japanese government subsidies.
The timing adjustment highlights TSMC’s careful balancing of its global manufacturing network, particularly as US-China tensions reshape semiconductor supply chains and automotive chip demand faces temporary headwinds.
