TSMC Delays Second Kumamoto Chip Plant to 2029 Amid Construction Challenges

Taiwan Semiconductor Manufacturing Company (NYSE: TSM) has pushed back the launch of its second semiconductor plant in Japan’s Kumamoto prefecture to the first half of 2029, according to a report by Nikkan Kogyo. The delay follows earlier warnings from the chipmaker about construction setbacks linked to traffic and logistical issues in the region.

Construction for the new facility, initially expected to progress sooner, is now scheduled to commence in the latter half of 2025. The plant will expand TSMC’s footprint in Japan, where the company already operates a manufacturing site that began production in late 2024. The existing factory produces 12 to 28 nanometer logic chips widely used in automotive electronics and image sensor applications.

TSMC’s expansion into Japan is part of its broader global strategy to diversify production beyond Taiwan amid rising geopolitical risks and surging demand for advanced semiconductors. The company has committed over $100 billion to international projects, including significant investments in new fabrication plants in the United States.

The delay in Kumamoto underscores the challenges global chipmakers face in rapidly scaling manufacturing capacity while managing local infrastructure constraints. Despite the setback, TSMC remains central to Japan’s efforts to revitalize its semiconductor industry and secure a stable chip supply for key sectors such as automotive and consumer electronics.

This development comes as global semiconductor demand continues to grow, driven by artificial intelligence, electric vehicles, and next-generation consumer devices, making Japan a critical hub for TSMC’s long-term production strategy.