Groundbreaking Delayed from March to Later This Year
Some Analysts Cite Semiconductor Market Demand
According to a report by Japan's Mainichi Shimbun on June 23, TSMC, the world's largest semiconductor foundry, has postponed the groundbreaking of its planned second plant in Kumamoto Prefecture, Kyushu, Japan. TSMC had originally intended to begin construction before March this year, but it is now reported that the schedule has been pushed back to later in the year.
On June 3, after a shareholders' meeting, TSMC Chairman Mark Liu told reporters that "traffic congestion around the plant" was the reason for the delay. However, there has been skepticism locally about this explanation. A member of the Kumamoto Prefectural Assembly pointed out that while high prices would be understandable, the explanation that traffic congestion is the cause is not convincing.
Mainichi Shimbun raised the possibility that, although TSMC cited traffic issues publicly, the real reason may be related to uncertainty in semiconductor market demand. With demand for semiconductors difficult to predict due to factors such as a slowdown in electric vehicle (EV) demand, analysts believe that TSMC is carefully assessing profitability and adjusting its investments accordingly.
Toru Imamura, an industrial promotion advisor for Kumamoto Prefecture, also commented, "TSMC seems to be moving cautiously while monitoring market trends."
Meanwhile, TSMC is also pursuing the construction of production facilities in the United States and Germany, and there is speculation that these projects have also influenced the delay in the groundbreaking.
Waseda University Professor Atsushi Osanai analyzed, "TSMC is a company that does not move unless profitability is guaranteed," and added, "They may be reconsidering their production strategy at the second plant in light of the outlook for the automotive industry."
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