TSMC Resumes Operations at Japan Plant After 7.1-Magnitude Earthquake

Taiwan Semiconductor Manufacturing Co. (TSMC) said on Tuesday it has begun a gradual resumption of operations at its chip manufacturing facility in Kumamoto, Japan, after a powerful earthquake forced a temporary halt to production.

Plant Status and Safety Checks

A 7.1-magnitude earthquake near the southern Japanese city of Kumamoto prompted the company to evacuate all personnel from its Japan Advanced Semiconductor Manufacturing (JASM) plant. In a statement, TSMC confirmed that all employees were evacuated safely.

Following the event, post-quake inspections verified that the facility's structures remained safe. The company has initiated a staged restart of production while engineers continue to conduct detailed inspections to assess any potential impact on sensitive manufacturing equipment.

Impact on Expansion

TSMC also reported that construction work at its JASM expansion site was not damaged by the earthquake. However, as a precautionary measure against the risk of aftershocks, parts of the expansion project have been temporarily suspended.

Ad

This development is closely watched by the market, as any significant delay could have implications for the global semiconductor supply chain. The operational status of sophisticated chip fabrication plants is highly sensitive to seismic activity.

Strategic Importance

The Kumamoto facility, which began production earlier this year, is a cornerstone of TSMC's strategy to diversify its manufacturing footprint beyond Taiwan. It also represents a key component of Japan's efforts to strengthen its domestic semiconductor supply chain amid rising geopolitical tensions.

The project has received substantial financial support from the Japanese government, which is actively working to bolster its national chip production capabilities to mitigate supply chain risks.