Rumor
TSMC considers shifting mature nodes to Singapore and bringing 2nm production to Japan
Saturday, December 27, 2025 at 09:27 AM
TSMC is reportedly restructuring its production capacity by shifting mature nodes to Singapore while considering Japan for 2nm manufacturing. Based on demand forecasts for 2028-2029, a 2nm expansion into Japan is viewed as a plausible strategic move.
Context
TSMC is reportedly reevaluating its Japanese expansion strategy, considering a significant technological leap to 2nm production at its Kumamoto hub. While the second facility was initially slated for 6nm and 7nm nodes, weak automotive demand and surging requirements from AI clients like NVIDIA have prompted a strategic pivot. Internal assessments suggest skipping mature nodes entirely to focus on the next-generation 2nm process, aligning the facility with the company's leading-edge roadmap in Taiwan where 2nm mass production begins in 2025.
This potential upgrade would dramatically increase the project’s capital expenditure, which could rise from an initial $10 billion to over $25 billion. The shift is contingent on continued support from the Japanese government, which has already committed nearly $8 billion in subsidies to revitalize domestic manufacturing. If finalized, the move would place Kumamoto at the center of the global AI supply chain, competing with homegrown ventures like Rapidus to secure sovereign chip manufacturing capabilities for advanced computing.
Related Companies
TSMC
2330