Construction of TSMC's second plant in the southern Japanese city of Kumamoto has suddenly halted for unknown reasons, according to Nikkei Asia.
Nikkei compared recent imagery of the construction site in November and early December, noting that most heavy equipment had been removed and most activity had come to a standstill over the month.
Supply chain sources claimed that the pause was due to design adjustments rather than funding issues.
Construction of the second plant began in October 2025, with production of six-nanometer wafers scheduled to start in December 2027. Nikki pointed out that these chips are less aligned with current demands driven by the rapid growth of the AI chip market.
TSMC has also delayed adding equipment for its original Kunamoto plant. Nikkei previously reported that no equipment was expected until at least 2026, with new reports indicating TSMC has informed several suppliers that no new equipment is needed throughout next year
The plant currently manufactures 40nm, 28nm, and the more advanced 16nm and 12nm chips for industrial, automotive, and consumer electronics. The decision may point to weak demand for mature processes and a strong shift towards AI-driven advances. （Related： Taiwan Revokes Chinese Worker's Residence Permit Over Pro-Unification Views ｜ Latest ）
TSMC neither confirmed nor denied the reports, stating only that the project will continue.
