Rumor
TSMC Reportedly Halts Equipment Additions at Kumamoto Fab 1 Until 2027 Due to Soft Demand
Friday, December 12, 2025 at 03:23 AM
Multiple sources claim TSMC has temporarily suspended adding equipment to its existing Kumamoto Fab 1, which produces mature nodes (40nm down to 12nm) for various sectors, and has informed suppliers that no new equipment will be needed throughout 2026, suggesting a delay until 2027.
Context
TSMC has reportedly paused equipment additions at its Kumamoto Fab 1, a facility dedicated to producing mature-node chips including 40nm, 28nm, 16nm, and 12nm processes. This halt is primarily driven by soft demand, particularly from the automotive sector, signaling ongoing weakness in this market segment.
According to reports, including a March article from Nikkei Asia, TSMC is not expected to add new tools at the fab at least through 2026, with some sources suggesting the pause could extend until 2027. Suppliers have been informed that no new equipment will be required throughout 2026.
This decision has significant implications for investors and equipment suppliers, as it indicates reduced near-term capital expenditure for the Kumamoto Fab 1 and highlights continued subdued demand for automotive and other mature-node semiconductors.
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