TSMC has begun gradually resuming production at its Japanese factory in Kumamoto after completing initial structural inspections following the preliminarily registered magnitude 7.1 earthquake on July 28. The company temporarily evacuated employees from Japan Advanced Semiconductor Manufacturing (JASM), confirmed that all personnel were accounted for, and assured that the inspected buildings were safe, although it is still assessing potential impacts on equipment and wafers in process.
The key impacts of the earthquake on TSMC in 30 seconds
- The earthquake had a preliminary magnitude of 7.1 and affected Kumamoto Prefecture in Japan.
- TSMC evacuated its staff at the JASM factory following emergency protocols.
- Initial inspections detected no structural damage, and production is gradually recovering.
- The expansion construction was undamaged, although work was temporarily suspended due to the risk of aftershocks.
- It is still unknown if there were wafer losses or disruptions to manufacturing equipment.
The quake was felt with a seismic intensity of 5+ on the Japanese scale in Kikuyo, the town where the TSMC complex is located. This scale measures the level of movement recorded in each area and should not be confused with the total magnitude of the earthquake.
The company activated its emergency procedures and temporarily evacuated the facilities. The initial priority was to check the condition of workers and assess the structural integrity of buildings before allowing a return to production areas.
“Post-earthquake structural inspections have concluded, confirming that the structures are safe. Operations are gradually resuming,” TSMC explained in a statement released after the quake. The company added that detailed inspections and impact assessments are ongoing.
A strategic plant for the Japanese industry
Japan Advanced Semiconductor Manufacturing is a Japanese subsidiary controlled by Taiwan Semiconductor Manufacturing Company (TSMC), with participation from Sony Semiconductor Solutions, Denso, and Toyota.
The Kumamoto facility began mass production in late 2024. It manufactures chips on 300mm wafers using 12nm and 16nm FinFET processes, as well as 22nm, 28nm, and 40nm technologies.
These nodes are not TSMC’s most advanced, but they are essential for sectors such as automotive, industrial electronics, image sensors, and numerous consumer devices. A modern vehicle can contain hundreds or thousands of semiconductors produced with mature processes, from power controllers to safety and communications systems.
TSMC designed the plant to produce approximately 55,000 wafers per month. With a second facility planned within the same complex, the combined capacity should exceed 100,000 wafers of 300mm per month.
The complete project represents an investment of over $20 billion and is part of Japan’s efforts to rebuild a domestic semiconductor supply chain. The Japanese government has provided substantial public aid to attract TSMC and reduce reliance on production concentrated in Taiwan and other Asian countries.
The presence of Sony, Denso, and Toyota also indicates the type of clients targeted by the facility. Sony needs chips for its image sensors, while Denso and Toyota aim to secure supply of automotive components.
Production may be affected without structural damage
Having passed inspections does not necessarily mean activity will immediately recover or that there are no losses in production.
Semiconductor factories operate with highly sensitive processes. A wafer can spend several weeks inside the facility, undergoing hundreds of steps before becoming a set of finished chips.
Vibrations can disrupt precise alignments, interfere with chemical processes, or cause certain wafers to be discarded. Some equipment used in lithography, deposition, etching, or inspection needs recalibration before resuming operation.
Other elements also need to be checked:
- Stable power supply;
- Ultra-pure water systems;
- Gas and chemical distribution;
- Particle control in cleanrooms;
- Vacuum and cooling systems;
- Machinery alignment;
- Wafers in process.
TSMC has not yet disclosed whether any lots were lost or how long it will take to fully restore pre-earthquake levels. The phrase “gradually resuming” indicates that lines and equipment are being restarted in phases, after passing safety and precision checks.
The economic impact will depend on how long each phase remains halted and how many wafers are affected. A brief shutdown can be managed by adjusting shifts and planning. Damage to specialized equipment or essential supplies could have longer-lasting consequences, but initial inspections do not suggest this is the case.
Construction continues, but with precautions
TSMC stated that the construction zone of the complex was not directly affected. Nonetheless, it temporarily suspended work as a precaution against additional aftershocks.
The company is developing a second installation in Kumamoto to expand capacity and enable production of more advanced chips. Initial plans included processes at 6nm and 7nm, and TSMC has also proposed producing 3nm semiconductors in Japan starting in 2028.
Incorporating 3nm technology would change the role of the Japanese facility. JASM would move beyond solely mature processes to participate in manufacturing chips for artificial intelligence, high-performance computing, and advanced devices.
These plans remain subject to investment decisions, customer demand, and public support. The earthquake does not appear to have immediately altered construction progress, but inspections must continue as long as the risk of further quakes persists.
Kumamoto hosting a growing share of chip manufacturing
Kyushu Island is known as Japan’s “Silicon Island” due to its concentration of semiconductor plants, chemical companies, equipment manufacturers, and specialized suppliers.
Alongside TSMC, companies such as Sony, Renesas, Mitsubishi Electric, and Tokyo Electron maintain facilities or activities in the region. This clustering facilitates access to skilled personnel and suppliers but also exposes a significant part of the supply chain to natural risks.
Japan enforces seismic-resistant construction standards, and modern factories feature systems to automatically halt equipment, close hazardous conduits, and protect personnel. However, no protocol can entirely eliminate the risk of disruption.
Earthquakes have previously impacted the Japanese semiconductor industry. In 2016, a series of quakes in Kumamoto forced shutdowns at Sony and other manufacturers, affecting the global supply of image sensors and electronic components.
TSMC’s response highlights the importance of having procedures to evacuate, inspect, and recover production without rushing the return to operations. The company had applied similar protocols at its Taiwanese factories after other seismic events.
Limited impact on supply for now
Based on current information, there are no indications of extended disruption at JASM. Structures are deemed safe, essential services are being checked, and activity is beginning to recover.
No changes have been announced yet regarding construction schedules or TSMC’s expansion plans in Japan.
However, it is still early to determine the final effect. Detailed inspections may reveal discrepancies in equipment not evident during structural reviews. Additionally, aftershocks could necessitate further evacuations or temporary halts.
While Kumamoto’s plant has limited weight within TSMC’s global capacity, its products are important for Japanese automotive and electronics clients. A shutdown lasting several days could impact specific shipments, but is unlikely to cause a global shortage on its own.
Gradual recovery lessens this risk. The most critical point will be when TSMC confirms all equipment is operational and whether wafers in process can proceed.
Frequently Asked Questions
Has the TSMC plant in Japan been damaged?
Initial inspections found no structural damage, and TSMC has confirmed the buildings are safe. The company is continuing to review equipment and assess operational impacts.
Has chip production in Kumamoto been halted?
Production was paused following the evacuation but is now gradually restarting. TSMC has not yet indicated when full operation will resume.
What chips does TSMC manufacture at the Japanese plant?
JASM’s first plant produces chips at 12nm, 16nm, 22nm, 28nm, and 40nm processes, mainly for automotive, industrial electronics, sensors, and consumer products.
Will the earthquake affect the global semiconductor supply?
There are no signs of a prolonged disruption at this stage. The impact will depend on equipment inspections, wafer losses, and how aftershocks evolve.
