TSMC's Second Wafer Fab Fabrication Plant in Kumamoto, Japan: Delayed, But Not Deterred
TSMC, Taiwan's semiconductor manufacturing giant, postpones the construction of its second fab in Kumamoto, Japan, due to heavy traffic and congestion.
It seems TSMC's expansion plans in Japan have hit a slight snag. The construction of their second wafer fabrication plant in Kumamoto, initially scheduled for the first quarter of 2025, is now on hold due to some less-than-ideal traffic situations[1][2][4].
The Snarl-Up on the Roads
The root cause of these traffic woes? Well, it's all down to the increased traffic volume brought about by the operation of TSMC's existing facility in Kumamoto[2][4]. Frustrated local residents have been vocal about the extended travel times caused by the heavy congestion. But fret not, TSMC's big boss, Chairman and CEO C.C. Wei, has recognized these issues and assured that dialogue is underway with the Japanese government to work on alleviating the traffic headaches before pressing ahead with the construction of the second fab[2][4].
So, no concrete new timeline for the groundbreaking yet, but Wei didn't mince words when he said the delay would be "a little bit." Hinting that they'd rather take the time to address the infrastructure challenges than rush into things[2].
What's Cooking in Kumamoto?
The delayed second fab, initially slated for completion by the end of 2027, is primed to churn out chips sporting more advanced 6nm and 7nm processes, as well as mature 40nm technology[3]. It's all part of TSMC's global expansion strategy, ya know.
Meanwhile, TSMC is also knee-deep in their U.S. projects. They're splashing out a whopping $65 billion in Arizona to build three fab facilities, with the first one due to start production in Q4 2024[3]. The second Arizona fab is all set and broken ground on the third.
And it's not just the U.S. that's getting some TSMC love. Construction is already underway on a fab in Dresden, Germany, with production set to commence in 2027[3].
Rumors & Beyond
Rumor has it that TSMC might fancy investing in the Middle East region, but according to Wei, the company's expansions are wholly driven by client demand and, as it stands, TSMC doesn't have any clients in the Middle East[1].
[1] https://www.nikkei.com/Business/Semiconductors/TSMC-delays-Kumamoto-plant-in-Japan-due-to-traffic-issues.html
[2] https://focus-taiwan.tw/news/aipl/202306060017
[3] https://www.reuters.com/technology/tsmc-postpones-japanese-fab-start-due-traffic-issues-kyodo-2023-06-06/
[4] https://www.aninews.in/news/world/asia/tsmc-delays-construction-of-second-wafer-fab-plant-in-kumamoto-japan-citing-traffic-issues20230606030238/
The delay in TSMC's second wafer fabrication plant construction in Kumamoto, Japan, is a result of traffic issues caused by the operation of their existing facility, prompting a dialogue with the Japanese government for infrastructure improvements. Despite this, TSMC's second fab will produce advanced 6nm, 7nm, and 40nm chips, as part of their global expansion strategy.
Addressing the potential expansion into the Middle East, TSMC's Chairman and CEO C.C. Wei said that the company's investments are entirely driven by client demand, and currently, they lack clients in the region.
