TSMC Kumamoto 2 factory construction delay due to prioritizing investment in the US
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Taiwanese semiconductor manufacturer TSMC plans to complete a factory in Kumamoto Prefecture in 2024, and then build a second factory to begin operations at the end of 2027. However, the factory construction plan has been postponed, and CEO Wei Zhejia cited traffic congestion as the reason , but the Wall Street Journal reported, citing sources, that the reason is that the company plans to expand its business in the United States before the 'Trump tariffs.'
Exclusive | TSMC to Delay Japan Chip Plant and Prioritize US to Avoid Trump Tariffs - WSJ
https://www.wsj.com/tech/tsmc-to-delay-japan-chip-plant-and-prioritize-us-to-avoid-trump-tariffs-f623c07e
TSMC to postpone start of construction of Kumamoto plant due to expanding investment in the US - Report: Jiji.com
https://www.jiji.com/jc/article?k=2025070400994
TSMC is a Taiwan-based semiconductor manufacturer that does not develop or design semiconductors, but is a 'foundry' that specializes in manufacturing. It has multiple factories in Taiwan, as well as in the United States, Japan, and China.
The Japanese factory will be completed in 2024 in Kikuyo, Kumamoto Prefecture, with a subsidy of approximately 400 billion yen from the Japanese government. It has also been decided to build a second factory in Kumamoto Prefecture, and the Japanese government has provided an additional subsidy of more than 700 billion yen.
Taiwanese semiconductor manufacturer TSMC's Kumamoto factory is finally completed, and the Japanese government has decided to grant a subsidy of approximately 730 billion yen for the construction of a second factory - GIGAZINE
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However, the construction plan for the Kumamoto No. 2 plant, which was scheduled to start operations at the end of 2027, has been delayed. TSMC CEO Wei Zhejia has cited the traffic congestion caused by the construction of the No. 1 plant as one of the causes, and has indicated that construction will be postponed until the situation improves.
CEO blames traffic congestion for delay in TSMC's second factory construction in Japan, reaffirms plan to invest $100 billion in Arizona over next five years - GIGAZINE
by Lee Ji-lin
The Wall Street Journal reports that TSMC is postponing plans to build a second Kumamoto factory because it has prioritized securing production capacity in the U.S. According to a person familiar with the plan, the construction plan is likely to be further delayed, and there is no prospect of resuming operations.
The Japanese government has reportedly heard that traffic congestion is not the reason for the delay in construction plans, and they do not expect any changes to the planned start of operations at the end of 2027.
By the way, TSMC is currently building its first European factory in Germany , which is scheduled to start operations at the end of 2027.
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