Taiwan Semiconductor Manufacturing Co.’s Japanese subsidiary signed a construction agreement with local authorities for its second Kumamoto factory, taking another step in the chipmaker’s multibillion-dollar bet on Japan’s semiconductor revival.
JASM, TSMC’s majority-owned unit, formalized the contract with Kikuyo Town officials in a ceremony witnessed by Kumamoto Governor Takashi Kimura. The facility will require an investment of roughly $13.9 billion (¥2.1 trillion), Nikkei reported, with production targeted for December 2027.
The plant will manufacture chips using 6-nanometer technology, representing a significant upgrade from the 12nm and 16nm processes at the adjacent first factory that began operations last year. The advanced semiconductors will serve applications in autonomous vehicles and artificial intelligence systems.
JASM President Yuichi Horida said the company will determine mass production timing based on market demand, noting the project’s substantial financial scale. The 69,000-square-meter facility is expected to employ 1,700 workers, bringing total staffing at both Kumamoto locations to around 3,400.
TSMC’s combined investment in both Japanese factories totals $22.5 billion (¥3.4 trillion), with Tokyo providing approximately ¥1.2 trillion ($8 billion) in subsidies. The construction timeline for the second plant has shifted multiple times since its initial announcement, with TSMC stating at its October 16 earnings call that production plans remain tied to customer requirements.
Japan’s Chief Cabinet Secretary Minoru Kihara said the government aims to continue strengthening the country’s semiconductor manufacturing capabilities.
