News
TSMC to pivot second Kumamoto fab to 2nm production amid shifting AI demand
Tuesday, November 25, 2025 at 06:29 AM
TSMC is reportedly planning to upgrade its second Kumamoto fab (JASM) to produce 2nm chips instead of the originally planned 6nm chips. This decision follows low utilization rates for 28nm and 6nm mature processes due to a slowdown in the automotive sector and competition from Chinese manufacturers. To address financial losses at the Japan facility and meet surging AI demand, CEO C.C. Wei has ordered a global production capacity review, shifting focus from mature nodes to advanced AI-capable processes.
Context
TSMC is reportedly considering a significant upgrade for its second Kumamoto plant in Japan, potentially shifting production to more advanced 4 nm (N4) chips to meet the surging demand for AI-related products. This development, reported by Nikkei Asia on December 11, 2025, suggests that construction and planning for the facility are being re-evaluated to align with this strategic pivot. It is important to note that this information stems from investigative reporting and has not been officially confirmed by TSMC.
This potential move holds substantial implications for the global semiconductor landscape, positioning Japan as a key player in the advanced AI chip supply chain and potentially alleviating pressure on TSMC's facilities in Taiwan. While earlier reports projected the second Kumamoto fab to commence operations in the 2027-2028 timeframe, these timelines may be subject to change pending a final decision on the process technology. A social media post, though uncorroborated by major outlets, speculates a capacity of 50,000 wafers/month for the N4 process at the plant.
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