TSMC Launches Mass Production at Kumamoto Facility as Third Plant Decision Looms

TSMC’s new semiconductor venture in Kumamoto, Japan, has officially kicked off mass production, marking a pivotal step in enhancing regional technological prowess. This development is spearheaded by Japan Advanced Semiconductor Manufacturing (JASM), a subsidiary of TSMC. The news was confirmed by Governor Takashi Kimura of Kumamoto Prefecture, who revealed that JASM notified the local government on December 23 regarding the start of operations. Although the exact date remains vague, it is clear that the project is progressing smoothly.

The Kumamoto Prefectural Government requires JASM to disclose details upon commencing mass production, a measure in place to monitor the plant’s wastewater management. This is in response to local concerns about groundwater use and potential environmental issues from wastewater discharge. Starting January 2025, regular inspections of wastewater emissions will ensure compliance with environmental standards.

This advanced fab focuses on producing logic Integrated Circuits using 12/16nm and 22/28nm technologies, benefiting key investors like Sony Semiconductor Solutions for image sensors and automotive giant Denso for vehicle chips. TSMC’s plans, initially announced in 2021, came to fruition with the construction of the fabr beginning in April 2022 and completion by December 2023. This facility, showcasing a cutting-edge 4.5-square-meter cleanroom, represents a hefty investment of JPY1.3 trillion (around US$8.27 billion), including substantial subsidies from Japan’s Ministry of Economy, Trade, and Industry.

Looking ahead, TSMC is poised to embark on building a second wafer fab in Kumamoto in early 2025, aiming for operational readiness by 2027. Together, these fabs reflect an estimated combined investment exceeding US$20 billion. Governor Kimura is also considering the potential for a third fab, though its realization is uncertain and contingent upon the smooth function of the first two facilities, alongside infrastructure improvements such as traffic and groundwater management.

Governor Kimura emphasizes the importance of community involvement and proactive responses to meet TSMC’s expectations, which are crucial for sustaining the semiconductor industry’s growth in the region.