On August 8th, Japan experienced a magnitude 7.1 earthquake with the epicenter located off the coast of Kyushu, in the sea east of Miyazaki Prefecture, at a focal depth of 30 kilometers. TSMC’s Kumamoto plant (JASM), located in Kumamoto Prefecture, experienced a seismic intensity scale of level 4.

As per a report from Commercial Times, regarding the impact of the earthquake, TSMC stated that the seismic intensity scale at the Kumamoto plant did not reach the evacuation threshold and is not expected to impact operations.

The schedule for its Kumamoto fab to start mass production in the fourth quarter remains unaffected, and construction work on the second plant has already begun. Kumamoto Prefecture Governor Takashi Kimura is scheduled to visit Taiwan at the end of August to actively seek a third plant.

TSMC’s first JASM plant in Kumamoto is set to start mass production in the fourth quarter, focusing on 12nm and 16nm processes. Construction work on the site for the second plant began at the end of the second quarter, with the building scheduled to break ground in the second half of the year.

Notably, Takashi Kimura, who took office in April, stated in an report from Bloomberg on May 11th that he would spare no effort to persuade TSMC to establish a third fab in the region, believing that during the preparations for TSMC’s first fab in Kumamoto, the region already possesses better-quality road and water infrastructure and an education system that better supports international school students, which could be advantageous.

Kyushu is a key region for Taiwan’s semiconductor industry. Recently, ASE Group, a leading packaging and testing company, decided to purchase land and establish a plant in Kitakyushu.

Testing company MA-tek, semiconductor materials distributor Topco Scientific, and Gudeng Precision have all set up bases in Kumamoto, while Gudeng is also planning to establish a new plant in Kurume, between Fukuoka and Kumamoto.

TSMC has indicated that most of its production sites, suppliers, customers, and upstream suppliers of semiconductor manufacturing services are located in areas susceptible to natural disasters.

Thus, to mitigate the risks that could lead to operational disruptions, TSMC has reportedly strengthened its ability to effectively respond to these risks through business continuity management to ensure operational resilience across its supply chain.

Commercial Times reported that from the very beginning of construction, TSMC has been reinforcing building structures, facilities, and equipment, along with implementing preventive measures. This is done to ensure that the plant remains undamaged, with no chemical leaks, equipment displacement, or injuries to personnel.

The evacuation standards for JASM are consistent with those of TSMC’s other plants in Taiwan. The recent earthquake did not meet the threshold for evacuation, so it is not expected to impact operations. This event also served as a stress test before mass production begins, the report noted.

Read more

• [News] TSMC’s Kumamoto Fab 2 Reportedly Begins Land Preparation
• [News] Kumamoto Vying for TSMC’s Third Fab, Looking to Build Semiconductor Hub

(Photo credit: TSMC)

According to a report by the Commercial Times, while TSMC, the global foundry leader, has established a plant in Kikuyo, Kumamoto City, Kyushu. ASE Technology Holdings (ASE), a giant in packaging industry, is setting up a plant in Kitakyushu as well. With these developments, Japan’s semiconductor production could potentially integrate both front-end and back-end processes, forming a cluster within Kyushu.

This development could lead to a revival of Kyushu’s semiconductor industry, once known as the “Silicon Island” in Japan, attracting more semiconductor supply chain companies to the region.

The report further notes that related equipment and inspection company, including MA-tek, semiconductor transmission and storage solutions provider Gudeng Precision, and semiconductor material distributor Topco Technologies Corp. (Topco) have all established bases in Kumamoto.

MA-tek, a leader in semiconductor inspection and analysis services, established its first Japanese laboratory in 2019 and a second one in Kumamoto in 2023. Since their establishment, these laboratories have consistently achieved growth rates higher than the company average.

With the rise of AI applications, many Japanese clients have AI chip development projects, leading to increased demand for MA-tek’s materials analysis (MA) and advanced process inspection services.

To capitalize on advanced process and packaging opportunities brought by AI, the company MAT has decided to increase its capital expenditure this year to between NTD 1.2 billion and NTD 1.4 billion.

These funds will be used to expand and upgrade the testing equipment and laboratory facilities in Nagoya and Kumamoto, and to establish a third laboratory in Hokkaido, which is expected to start contributing to revenue in Q1 2025.

On the other hand, Gudeng Precision is also planning to build a new plant in Kurume in Q2 this year, located between Fukuoka and Kumamoto, with a planned area of approximately 3,000 ping (about 10,000 square meters).

Gudeng Precision’s investment in Kurume, Japan, including equipment procurement, is estimated at about NTD 400 million to NTD 450 million. Construction is expected to begin by the end of this year, with production slated to start by the end of 2025.

Read more

• [News] TSMC’s JASM Kumamoto Plant 2 Greenlit, Construction Expected to Commence by Year’s End
• [News] Kumamoto Vying for TSMC’s Third Fab, Looking to Build Semiconductor Hub

(Photo credit: JASM)

As TSMC and Intel slow down their plans for building fabs in the United States, the supply chain, according to a report from Nikkei Asia, is also said to delay in following suit, with semiconductor material suppliers like Topco Scientific, LCY Chemical, and Chang Chun Group among those named.

Per the same report citing statements from several industry sources, the construction of these fabs has been either postponed or significantly scaled back due to soaring costs of construction materials and labor, as well as a shortage of construction workers.

While some delays may be temporary, other fab construction projects are being thoroughly reassessed, with no specific timetable for resuming. Suppliers attribute the delays in fab construction plans to the slower-than-expected progress of Intel and TSMC in setting up their facilities.

The sources cited in the report also revealed that Solvay, a leading supplier of high-purity hydrogen peroxide for semiconductor use based in Belgium, has postponed the construction of its Arizona plant due to cost concerns and fears that Intel and TSMC’s expansion progress may take longer than expected.

Meanwhile, another major manufacturer of high-purity hydrogen peroxide for semiconductors, Taiwan’s Chang Chun Group, has significantly scaled back the construction of its new Arizona plant due to costs that have exceeded expectations by several times.

Regarding this issue, Chang Chun Group reportedly opted not to provide comments, while Solvay mentioned they are currently investigating the matter.

Topco Scientific has reportedly pointed out that it has acquired land in Arizona, USA. However, the company is currently adjusting its investment schedule for warehouse logistics in Arizona. This adjustment aligns with the progress and demand of its customers in setting up factories, as well as the local infrastructure planning, which includes water and power supply and road construction.

Per the report citing sources, TSMC originally planned to begin mass production at its Arizona plant in 2024. However, this timeline has now been postponed to 2025. Initial expectations for the second fab’s schedule were set for 2026, but it is now likely to be pushed back to 2027-2028

As per a previous report from TechNews, despite the United States outperforms Taiwan in various aspects for foundry construction, the primary obstacle is regulatory issues.

Due to the unique federal structure of the United States, foundry construction must comply with federal, state, and local regulations, resulting in an exceptionally complex regulatory process. Additionally, environmental policies pose obstacles to foundry construction, particularly due to stringent requirements for environmental protection

The report suggests that to enhance the United States’ competitiveness in the global semiconductor industry, the government needs to streamline regulatory processes, eliminate redundant regulations, and establish expedited pathways to accelerate semiconductor industry construction projects.

Additionally, there should be an acceleration of environmental review processes and investment in the development of alternative materials to ensure sustainable semiconductor material supplies.

With the continued growth in global semiconductor demand, the construction speed and efficiency of US semiconductor fabs will directly impact its position in the global market.

Read more

• [News] TSMC’s 4nm Process Powers NVIDIA’s Blackwell Architecture GPU, AI Performance Surpasses Previous Generations by Multiples
• [News] Opening of TSMC Kumamoto Plant Nears, Yet Delay in Arizona Plant – Why is US Semiconductor Fab Construction Lagging Globally?

(Photo credit: TSMC)