TSMC is reportedly reassessing production plans at its Japan Advanced Semiconductor Manufacturing (JASM) facilities in Kumamoto Prefecture, according to semiconductor industry insiders. The company holds a majority stake in JASM, whose ‘Fab 23 phase 1’ plant came online a year ago and is focused on past-generation wafers, producing at best on a 12 nm process node. A neighboring ‘phase 2’ foundry remains under construction, but new information suggests some activities at this site have been put on hold as TSMC reconsiders its strategy.
Fab 23 phase 2, also known as JASM phase 2, was initially designated as a 6 nm and 7 nm chip production specialist, with building work expected to end by 2027. Rumors from late 2023 said company leadership was mulling an upgrade to an N4 process, and this year’s surging demand for Artificial Intelligence grade hardware has reportedly triggered another review of the production outlook. Nikkei Asia reports that TSMC is considering using its second plant in Japan to make more advanced chips than originally planned, with unnamed sources claiming the in-progress phase 2 site could move to N4 and N5 as demand for 6 nm and 7 nm products has recently diminished.
Tom’s Hardware examined the latest claims and highlighted signs of a construction pause at Fab 23 phase 2. The report notes that the fab entered the early phase of physical build-out in late October, photos taken at the site in November showed cranes, excavators, and piledrivers on site, but images captured in early December revealed that nearly all heavy equipment had been removed. Suppliers were reportedly notified that work would pause, with no reasons given, and Nikkei’s insiders also claim that new equipment orders are on hold, saying the two Japanese sites will not require any additional tools ‘throughout 2026.’
