Kumamoto: The start of construction on the second wafer fab of contract chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) in Kumamoto, Japan, has been delayed due to traffic problems, TSMC Chairman C. C. Wei said Tuesday. Wei's comments confirmed recent reports that the second fab project has been postponed from the originally scheduled first quarter, when the chipmaker was to break ground on the plant.
According to Focus Taiwan, speaking with reporters on the sideline of TSMC's annual general meeting, Wei stated that the presence of TSMC's first facility has increased traffic volume in Kumamoto, leading to complaints from local residents. "Many residents there have become impatient about the heavy traffic volume," Wei said. "TSMC is communicating with the Japanese government to improve the traffic conditions before the start of construction."
Wei mentioned that the fab 2 project will be delayed "a little bit," but he did not disclose when construction is expected to start under the new schedule. TSMC is also in discussions with its clients, who are eager for the second fab's capacity to be operational, regarding the construction postponement.
TSMC's first fab in Kumamoto began mass production in late 2024, utilizing the mature 12 nanometer, 16nm, and 28nm processes. The second fab, initially scheduled to begin operations at the end of 2027, will employ advanced 6nm and 7nm processes along with the mature 40nm technology.
The Kumamoto project is part of TSMC's global expansion strategy. In the U.S. state of Arizona, TSMC is investing US$65 billion to build three wafer fabs, with the first one commencing production in the fourth quarter of 2024. Construction of the second fab was recently completed, and the company has broken ground on the third.
In March, TSMC committed to investing an additional US$100 billion over the next few years to construct three more fabs, two IC assembly facilities, and one research and development center in Arizona. TSMC has also initiated construction on a fab in Dresden, Germany, with production slated to start in 2027.
At the shareholder meeting, Wei dismissed market speculation about potential investments in the Middle East, clarifying that TSMC's expansion is driven by client demand and it currently has no clients in the Middle East.