TSMC Kumamoto Plant Resumes Phased Production After Earthquake; Detailed Equipment Inspections Ongoing, Expansion Construction Halted Due to Aftershocks

The 7.1-magnitude earthquake in Kumamoto Prefecture, Japan, initially sparked market concerns regarding the semiconductor supply chain. However, Taiwan Semiconductor's wafer fab in the region has begun to resume operations in phases. The structural integrity of the factory buildings has been confirmed, and the main expansion project has suffered no damage, meaning the risk of supply disruption has not widened for now.

According to media reports on July 29, Taiwan Semiconductor stated on Tuesday that following the earthquake, the Japan Advanced Semiconductor Manufacturing (JASM) plant in Kumamoto Prefecture had successfully evacuated all personnel. Preliminary inspections revealed no significant damage to the main structure of the factory buildings, and production is currently resuming in phases as planned. Engineering teams continue to inspect equipment conditions and assess the actual impact of the earthquake on production operations.

According to Xinhua News Agency, Japanese Prime Minister Sanae Takaichi stated at the Prime Minister's Official Residence on the 29th that as of 8:30 a.m. local time, the death toll from the Kumamoto Prefecture earthquake had reached 13. The earthquake caused injuries to many people, collapsed numerous houses trapping residents, and resulted in widespread power outages and traffic disruptions.

Despite certain impacts on local infrastructure, Taiwan Semiconductor indicated that the construction site for the Kumamoto plant's expansion project was not damaged by the earthquake. Only some construction activities have been temporarily suspended as a precaution against aftershock risks, with work set to resume once safety is confirmed.

The Kumamoto plant officially began production this year. It is a key project in Taiwan Semiconductor's overseas manufacturing layout and an important pillar for Japan's efforts to strengthen its domestic semiconductor supply chain. Following the earthquake, there were initial market concerns that advanced process capacity might be impacted. However, based on currently disclosed information, both the main factory buildings and the expansion project remain intact, and phased production resumption has begun. This suggests that the actual impact of this earthquake on the global semiconductor supply chain is expected to be relatively limited.