Taiwan's TSMC delays second Kumamoto fab construction due to traffic congestion

Taipei [Taiwan], June 4 (ANI): Taiwan Semiconductor Manufacturing Co. (TSMC) has postponed the commencement of construction for its second wafer fabrication plant in Kumamoto, Japan, citing significant traffic issues impacting local residents, as reported by Focus Taiwan.

The delay was confirmed by TSMC Chairman C.C. Wei on Tuesday. Chairman Wei acknowledged that the presence of the first Kumamoto facility has led to a surge in traffic volume, prompting complaints from the local community.

He said that "many residents there have become impatient about the heavy traffic volume." Adding that TSMC is actively engaged in discussions with the Japanese government to alleviate the traffic situation before construction can begin.

While Wei did not provide a new timeline for the project, he indicated the delay would be "a little bit."

The first Kumamoto fab commenced mass production in late 2024, utilising mature 12-nanometer (nm), 16nm, and 28nm processes. The delayed second facility, originally slated to begin operations by the end of 2027, is intended to produce chips using more advanced 6nm and 7nm processes, as well as mature 40nm technology.

The Kumamoto project is part of TSMC's broader global expansion strategy. In the United States, TSMC is investing USD 65 billion in Arizona to construct three wafer fabs, with the first to start production in the fourth quarter of 2024.

While construction of the second Arizona fab has been completed, ground has been broken on the third.

Earlier this year, TSMC pledged an additional USD 100 billion investment over the next few years for three more fabs, two IC assembly facilities, and a research and development centre in Arizona, US.

Additionally, TSMC has commenced construction on a fab in Dresden, Germany, with production anticipated to start in 2027.

During the shareholder meeting, Chairman Wei also addressed market rumours about potential investments in the Middle East, dismissing them by stating that the company's expansion is driven by client demand, and TSMC currently has no clients in that region. (ANI)