Taiwan Semiconductor Manufacturing Co. (TSMC) has postponed the construction of its second wafer fabrication plant in Kumamoto, Japan, due to traffic concerns.

TSMC Chairman C.C. Wei said local residents have complained about traffic congestion from the first facility.

TSMC is communicating with the Japanese government to improve traffic conditions before starting construction. The revised timeline has not been disclosed.

The second fab, originally scheduled for completion by late 2027, will use advanced 6nm and 7nm technologies along with mature 40nm processes.

The first Kumamoto fab, which began mass production in late 2024, uses 12nm, 16nm, and 28nm processes.

TSMC is discussing the delay with clients expecting additional production capacity.

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🔗 Source: Focus Taiwan

🧠 Food for thought

1️⃣ Global semiconductor fab expansions face persistent delays beyond Japan

TSMC’s Kumamoto delay fits a wider pattern of semiconductor manufacturing facilities facing setbacks worldwide despite ambitious expansion plans.

In the United States, TSMC’s Arizona fabs are delayed by at least a year due to federal funding complications and skilled worker shortages, demonstrating that such challenges transcend borders 1.

Intel’s $20 billion Ohio manufacturing complex has similarly pushed back its completion dates to 2030 and 2031, highlighting industry-wide construction challenges 2.

These delays stem from consistent factors: regulatory hurdles, labor shortages, and infrastructure constraints, with U.S. construction permit approvals reportedly taking twice as long as in Taiwan 3.

The pattern shows how even the world’s leading semiconductor manufacturers struggle with the complexity of establishing new production facilities regardless of location or government support.

2️⃣ Workforce shortages emerge as critical constraint in global chip manufacturing

Taiwan’s semiconductor dominance faces a significant threat from talent shortages, with 35,167 unfilled engineering positions reported in early 2022 4.

This shortage extends to TSMC’s global expansion efforts, including their Japanese and American facilities, where specialized technical knowledge is required for both construction and operation 1.

The U.S. semiconductor industry specifically faces a projected shortage of 300,000 engineers and 90,000 skilled technicians over the next 8-10 years, creating a bottleneck for capacity expansion 5.

TSMC’s challenges in Japan likely extend beyond the reported traffic issues to include skilled labor constraints, especially as the second fab will utilize more advanced processes requiring specialized expertise.

The talent gap represents a structural limitation on how quickly the semiconductor industry can expand globally, regardless of available capital or government incentives.

3️⃣ Semiconductor manufacturing requires complex local adaptation

TSMC’s traffic-related delays in Kumamoto reveal how chip manufacturing facilities must adapt to local conditions beyond technical considerations.

In the U.S., TSMC encountered unexpected challenges with local construction regulations and lengthy permitting processes that significantly impacted timelines 3.

The company faces distinct regulatory environments across its global expansion in Japan, the U.S., and Germany, each requiring different approaches to community relations and compliance 1.

Despite receiving substantial government support, including a $6.6 billion CHIPS Act grant in the U.S., TSMC still struggles with local implementation challenges that affect construction schedules 3.

These location-specific obstacles demonstrate that semiconductor manufacturing globalization requires not just technical expertise but also sophisticated understanding of local contexts, adding complexity to expansion timelines.

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