TSMC's Kumamoto Second Plant Halted Work: Upgrade to 4nm Technology

2025-12-15

TSMC is reassessing the process technology plan for its second wafer plant in Kumamoto, Japan (JASM Phase 2), with plans to upgrade from the originally scheduled 6nm/7nm to the more advanced 4nm process. This adjustment aims to meet the explosive

TSMC Halts Construction at Kumamoto's Second Plant

growth in demand for AI chips and also reflects TSMC's strategic layout and technological transformation in the global semiconductor market.

The second plant in Kumamoto was originally scheduled to start production at the end of 2027, mainly producing 6nm/7nm and 40nm process chips, targeting markets such as autonomous driving and AI. However, in recent years, with major customers like Nvidia and Apple accelerating their migration to more advanced processes, the demand for 6nm/7nm chips has significantly declined. Meanwhile, the 4nm process has become the mainstream choice for AI chips due to its superior performance and higher energy efficiency.

Halt and Upgrade at Kumamoto's Second Plant

According to a report by Nikkei Asia, TSMC halted construction at its second plant in Kumamoto in early December. Heavy equipment was removed from the site, and suppliers were also notified of the suspension. The halt is not only due to changes in market demand but also because TSMC needs time to redesign the factory to accommodate the 4nm technology. This technological upgrade may require significant adjustments to the plant's infrastructure, which could delay the start of mass production.

Previously, the Japanese government had supported the project with a subsidy of 732 billion yen, highlighting its strategic determination to strengthen the domestic semiconductor industry chain. If the upgrade to 4nm technology is successful, the Kumamoto plant will become Japan's first wafer plant with 4nm process capabilities, significantly enhancing Japan's self-sufficiency in AI semiconductors.

Future Outlook and Industry Impact

The technological upgrade and suspension of construction have far-reaching implications for TSMC and the entire semiconductor industry. On one hand, by upgrading its technology, TSMC will be better able to meet the market's demand for high-performance AI chips. On the other hand, this move may also prompt other semiconductor manufacturers to reevaluate their technological paths and market strategies. In addition, TSMC plans to introduce advanced packaging technology in Japan, which will further enhance its competitiveness in the Japanese market.

Despite the challenges of suspended construction and technological adjustments, TSMC's strategic decision not only helps it maintain its leading position in the global semiconductor market but also provides new opportunities for the revival of Japan's semiconductor industry. In the future, with the implementation and mass production of 4nm technology, TSMC's Kumamoto plant is expected to become an important base for global AI chip manufacturing.

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