TSMC's Japanese subsidiary, Japan Advanced Semiconductor Manufacturing (JASM), officially signed an agreement with the Kikuyo Town government on October 24 to begin construction of its second Kumamoto fab, marking the project's formal start. The new facility, dubbed "Kumamoto Phase 2," is expected to begin operations by the end of 2027 and will focus on producing 6nm semiconductor wafers for next-generation AI and autonomous driving applications.

Located just east of the first fab, the second Kumamoto plant will cover approximately 69,000 square meters and employ about 1,700 workers — the same as its predecessor. JASM President Yuichi Hotta emphasized during the signing ceremony that the project represents a massive investment, with the ramp-up schedule to be carefully aligned with future market demand trends.

Together, TSMC's two Kumamoto fabs represent a combined investment of US$22.5 billion, backed by around US$7.7 billion in subsidies from Japan's Ministry of Economy, Trade and Industry. Chief Cabinet Secretary Minoru Kihara reaffirmed Japan's commitment to strengthening its semiconductor infrastructure and developing advanced chip manufacturing bases nationwide.

The project, however, has faced delays. After the first fab began operations, increased industrial traffic in the area led to community complaints, pushing back the Phase 2 construction start from the original March 2025 schedule to October. Additionally, weaker demand for consumer electronics and automotive chips contributed to the postponement. TSMC Chairman and CEO C.C. Wei noted that competitive pressure on image sensors and slower market recovery have also influenced the timeline.

Kumamoto Phase 1, which entered mass production late last year, currently manufactures chips using 22/28nm and 12/16nm processes with a maximum monthly capacity of 55,000 wafers. The upcoming Phase 2 will introduce Japan's most advanced 6nm process technology, representing a major leap in local semiconductor capability.

Industry observers believe TSMC's expansion strategy in Japan will play a key role in revitalizing the country's chip ecosystem. The joint venture involves partners such as Sony and Denso, a key automotive component maker under Toyota. The start of construction on Kumamoto Phase 2 marks not only a milestone for TSMC's global operations but also a pivotal moment for Japan's efforts to rebuild a competitive semiconductor supply chain.