Fighting for the third factory, the governor of Kumamoto Prefecture visited TSMC headquarters on the 24th

TSMC’s factory in Kikuyo Town, Kumamoto Prefecture, Japan (Kumamoto Factory 1) has entered mass production by the end of 2024, and the main construction of the second factory in Kikuyo Town (Kumamoto Factory 2) has started in October. Kumamoto Prefecture Governor Kei Kimura is expected to visit TSMC’s headquarters on November 24 to strive for the construction of the third factory.

Nikkei Shimbun and Kyodo News reported that Kumamoto Prefecture announced on the 19th that Governor Kimura Kei will visit the TSMC headquarters in Hsinchu, Taiwan, on November 24 to hold talks with TSMC operating officials. Kimura Kei said at a press conference held on the 19th, "I will explain Kumamoto Prefecture's efforts in traffic congestion countermeasures to TSMC, and hope to use this to strive to build a third factory."

It is reported that Kimura Kei will visit Taiwan from November 23 to 25. This will be Kimura Kei’s second visit to TSMC headquarters after August 2024. In addition to expressing gratitude for the start of construction of TSMC's Kumamoto Plant 2, Kimura will also demand further investment, including the third plant. However, it is not yet clear which TSMC officials Kimura met with.

JASM, the operating subsidiary of TSMC’s Kumamoto plant, signed a “Site (Site Selection) Agreement” with Kikuyo Town on October 24, and the main construction of the Kumamoto Plant 2 started in October. The Kumamoto Plant II has an investment of approximately US$13.9 billion (approximately 2.1 trillion yen) and is expected to be put into production in December 2027. It will mainly produce 6-nanometer chips that are more advanced than the Kumamoto Plant I. It is expected to be used in artificial intelligence (AI), autonomous driving and other applications.

Although TSMC’s Kumamoto Plant II is scheduled to go into production in December 2027, full mass production may be delayed further. JASM President Yuichi Hotta said at a press conference after the signing ceremony, "Because it is a huge investment, the time for full mass production will be decided after careful evaluation based on factors such as demand trends." The number of employees at the Kumamoto Plant 2 is estimated to be 1,700. Taking the total number of employees at the Kumamoto Plant 1 (approximately 1,700) into account, the overall workforce will be 3,400.

TSMC Kumamoto Plant 1 produces 12-28nm process logic chips. When converted to 12-inch silicon wafers, the combined monthly production capacity of TSMC Kumamoto Plant 1 and Plant 2 will reach more than 100,000 pieces. TSMC’s total investment in Kumamoto Plants 1 and 2 is US$22.5 billion (approximately 3.4 trillion yen), of which the Japanese government will subsidy up to 1.2 trillion yen (the total subsidy amount of Kumamoto Plants 1 and 2).