TSMC Accelerates Construction Timeline for Second Kumamoto Plant Amid Global

Semiconductor Demand Surge

Taiwan Semiconductor Manufacturing Company (TSMC) has announced a revision to the construction schedule for its second semiconductor fabrication plant in Kumamoto, Japan. Initially planned to break ground between January and March 2025, the project will now commence later this year to meet the escalating global demand for semiconductors.

TSMC Kumamoto Expansion Accelerates

According to reports from Japanese media, TSMC is set to invest approximately 2.1 trillion yen (around $14 billion USD) in the construction of the Kumamoto No. 2 facility, located on a 321,000-square-meter site adjacent to the existing first plant. Despite the accelerated timeline, the company confirmed that the second facility remains on track to begin production by late 2027.

The second Kumamoto plant will focus on manufacturing advanced 6-nanometer (nm) chips, which will be the most cutting-edge semiconductor products produced domestically in Japan.

Kumamoto Plant 1: Production Expansion Underway

At the Kumamoto Semiconductor Exhibition held on February 21, Yuichi Horita, President of Japan Advanced Semiconductor Manufacturing (JASM)—TSMC’s subsidiary overseeing the Kumamoto operations—announced that production capacity at the first plant, which commenced mass production in late 2024, is already being expanded.

The Kumamoto No. 1 plant specializes in producing logic chips using 12nm to 28nm process technologies, which are critical for a variety of applications, including automotive electronics and industrial devices.

Massive Production Capacity and Government Support

Once both plants are fully operational, the combined monthly output is expected to surpass 100,000 wafers (calculated on a 12-inch wafer equivalent basis). The total investment for both factories is estimated to reach around 2.96 trillion yen (approximately $20 billion USD).

The Japanese government has pledged substantial financial support for this strategic initiative, committing up to 1.2 trillion yen (approximately $8 billion USD) in subsidies. This investment underscores Japan’s commitment to strengthening its semiconductor supply chain resilience.

In addition to financial backing, TSMC’s Kumamoto facilities are expected to significantly bolster local employment, with plans to hire over 3,400 employees across both sites.

Strengthening Japan’s Semiconductor Ecosystem

TSMC’s aggressive expansion strategy in Japan highlights the country's growing role in the global semiconductor landscape. The company’s commitment to scaling up operations in Kumamoto aligns with Japan’s broader efforts to revitalize its semiconductor industry and reduce reliance on foreign supply chains.

As global demand for advanced semiconductors continues to soar—driven by rapid growth in AI, automotive electronics, and next-generation communication technologies—TSMC’s investments are expected to play a pivotal role in meeting these market needs.