TSMC announced on June 11, 2025, that its second semiconductor fabrication plant in Kikuyo, Kumamoto Prefecture, is now scheduled to begin construction in the second half of 2025, with groundbreaking expected sometime after July.
The update was delivered by Makoto Onodera, president of TSMC Japan, during the company's "TSMC 2025 Technology Symposium Japan" held in Yokohama.
Initially, the second plant was slated to commence construction in the first quarter of 2025. However, following TSMC's annual shareholders' meeting on June 3, 2025, chairman CC Wei told reporters that the company opted to postpone the timeline until regional traffic conditions improve.
Japanese clients drive demand for advanced manufacturing
Speaking at the symposium, Onodera noted that Japan's reliance on TSMC has deepened as domestic chipmakers lag in advanced process technologies, prompting a growing number of Japanese firms to shift high-end production to the Taiwanese giant.
This shift in demand has significantly boosted TSMC's presence in Japan. Sales in the Japanese market surged from just US$15 million in 1997 to US$4.3 billion in 2024. Cumulative wafer shipments to Japan (converted to 300mm equivalents) reached 12.19 million units, with 1.49 million wafers delivered in 2024 alone—roughly 10% of the company's global output. Key customers include Sony and other Japanese technology giants.
TSMC deepens R&D footprint in Japan
TSMC has ramped up its investment in Japan's semiconductor ecosystem. The company has established a 3D IC R&D center and a design hub in Osaka. Its first Kumamoto facility—developed through Japan Advanced Semiconductor Manufacturing (JASM), a joint venture—began mass production in late 2024. As of April 2025, TSMC had hired 527 new local employees in Japan, bringing the total headcount at JASM to approximately 2,400.
Pushing the boundaries with A14 technology
TSMC also unveiled plans to begin mass production of its next-generation "A14" manufacturing process by 2028. The advanced node will feature circuitry widths of just 1.4 nanometers, underscoring TSMC's ambition to maintain its global leadership in semiconductor manufacturing.
Article edited by Jerry Chen
