The start of construction on the second wafer fab of Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in Kumamoto Prefecture, Japan, has been delayed due to traffic problems, TSMC chairman and chief executive officer C. C. Wei (魏哲家) said yesterday.
Wei’s comments confirmed recent reports that the second fab project has been postponed from the originally scheduled first quarter, when the chipmaker was to break ground on the plant.
Speaking with reporters on the sidelines of TSMC’s annual shareholders’ meeting in Hsinchu City, Wei said the presence of TSMC’s first facility has boosted traffic volume in Kumamoto, leading to complaints from local residents.
Photo: I-Hwa Cheng, AFP
“Many residents there have become impatient about the heavy traffic volume,” Wei said.
The sudden influx of workers from TSMC’s first fab is already bogging down rural infrastructure, he said.
“I have experienced that in person. For what used to take a 10-15 minute drive, it now takes almost an hour,” Wei said.
“TSMC is communicating with the Japanese government to improve the traffic conditions before the start of construction [of the second fab].”
Wei said the project will be delayed “a little bit,” but he did not disclose when construction is expected to start under the new schedule.
TSMC is also communicating with its clients, which are keen to see the capacity of the second fab come online, about the construction postponement, he said.
TSMC said in an e-mailed statement late yesterday that it is to start construction of the second fab within this year
In response to Wei’s comments, Japanese Chief Cabinet Secretary Yoshimasa Hayashi said at a regular news conference, “Heightened uncertainty in the global economy, along with challenges including the lack of domestic infrastructure and labor can lead to hesitation among private companies thinking of investing.” Tokyo recognizes the need to create an environment that attracts talent and investment from overseas, he said.
TSMC’s first fab in Kumamoto started mass production in late last year, using the mature 12 nanometer, 16nm and 28nm processes.
The second fab, which was originally scheduled to begin operations at the end of 2027, will use advanced 6nm and 7nm processes and the mature 40nm technology.
Additional reporting by Bloomberg
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