Japan's quake shakes Kumamoto, the city anchoring TSMC's ₹1.91 lakh crore expansion
A temporary shutdown at a factory in one Japanese prefecture attracts worldwide attention because Kumamoto has emerged as one of Japan's most important semiconductor manufacturing hubs.
Taiwan Semiconductor Manufacturing Company (TSMC) resumed operations at its Kumamoto semiconductor facility on Tuesday evening, only hours after a magnitude-7.1 earthquake forced workers to evacuate the site. The earthquake disrupted manufacturing across the region and claimed at least 13 lives in southern Japan.
According to a company statement cited by Reuters, employees at Japan Advanced Semiconductor Manufacturing (JASM) were unharmed and the facility cleared structural safety inspections. Engineers are continuing detailed equipment checks to determine whether production has been affected.
The earthquake also disrupted operations at several other major manufacturers. Reuters reported that Tokyo Electron halted production at its two Kumamoto facilities until Wednesday, while Sony and Fujifilm evacuated their employees. Honda also temporarily suspended operations at its motorcycle plant in the prefecture.
Why Kumamoto matters to the global chip industry
Quick answers to key questions
The magnitude-7.1 earthquake prompted an evacuation at TSMC's Kumamoto facility, but operations resumed shortly after the site passed structural safety inspections, with no reported injuries among employees.
Kumamoto has become a vital semiconductor manufacturing hub in Japan, housing major companies like TSMC and Sony, and producing essential components for various industries including autos, electronics, and AI.
TSMC's establishment of Japan Advanced Semiconductor Manufacturing (JASM) has significantly expanded Kumamoto's semiconductor capabilities, with a planned investment exceeding $20 billion and a focus on high-tech chip production.
The first factory at JASM manufactures semiconductors using processes like 12- to 40-nanometre technologies, while the second factory is set to produce more advanced 3-nanometre chips for high-performance applications.
Sony is a key investor in JASM and a major semiconductor producer in the region, utilizing its image sensors in various applications while exploring a joint venture with TSMC to develop next-generation sensors.
A temporary shutdown at a factory in one Japanese prefecture attracts worldwide attention because Kumamoto has emerged as one of Japan's most important semiconductor manufacturing hubs.
The region is home to companies producing chips, semiconductor manufacturing equipment and image sensors used in automobiles, industrial machinery, consumer electronics and increasingly artificial intelligence applications.
Although Kumamoto had an established semiconductor industry long before TSMC arrived—with Sony manufacturing image sensors there and Tokyo Electron producing chipmaking equipment—the Taiwanese chipmaker significantly expanded the region's strategic importance.
How TSMC expanded its presence in Japan
TSMC set up Japan Advanced Semiconductor Manufacturing (JASM) in 2021 with minority investments from Sony Semiconductor Solutions, automotive supplier Denso and Toyota Motor.
Construction of the first factory began in 2022, and commercial production started at the end of 2024, according to TSMC's 2025 annual report.
When announcing the project, TSMC said combined investment across its two Kumamoto facilities would exceed $20 billion ( ₹1.91 lakh crore), with an expected production capacity of more than 100,000 12-inch wafers every month.
The investment has turned Kumamoto into a major semiconductor centre by bringing together the world's largest contract chipmaker, one of the leading image sensor manufacturers and a major producer of semiconductor equipment within the same industrial cluster.
What chips are produced at the plants?
JASM's first factory manufactures semiconductors using several fabrication technologies, including 12-, 16-, 22-, 28- and 40-nanometre processes.
While these are not the industry's most advanced chips, they remain essential for vehicles, industrial equipment, consumer electronics and other products that require dependable long-life components.
The second factory was originally planned to manufacture 6- and 7-nanometre chips. However, in February 2026, TSMC chief executive CC Wei announced that it would instead produce 3-nanometre semiconductors to meet rapidly growing AI demand.
Three-nanometre chips are widely used in high-performance processors and AI servers. At present, most of TSMC's cutting-edge chips continue to be manufactured in Taiwan.
Japanese newspaper Yomiuri estimated that the revised Kumamoto project would cost around $17 billion. Reuters reported that while TSMC confirmed the shift to 3-nanometre production, it declined to comment on the investment estimate.
Sony's expanding role in Kumamoto
Sony is both an investor in JASM and a major semiconductor manufacturer in Kumamoto.
Its image sensors are widely used in smartphones, digital cameras, vehicles, industrial equipment and security systems. According to the company, Sony accounts for around 53% of the global image sensor market by revenue.
In May, Sony and TSMC signed a non-binding agreement to explore a joint venture at Sony's new facility in Koshi City, Kumamoto. The proposed venture would focus on developing and manufacturing next-generation image sensors for sectors including automotive technology and robotics.
Sony would retain control of the venture if a final binding agreement is reached.
About the Author
Kanishka Singharia is a Senior Content Producer at Mint with a passion for news, trends, and the stories shaping the digital world. She specialises in spotting viral narratives by constantly tracking social media platforms and turning them into engaging, reader-friendly stories. Her work ranges from fast-paced breaking updates to sensitive human-interest features, blending speed with clarity. <br><br> With over four years of experience in news and trend reporting, Kanishka has worked with leading organisations such as Hindustan Times and Times Now. She moves seamlessly between profiling business leaders and telling the stories of everyday people, covering national developments just as effortlessly as the memes and conversations that dominate online culture. <br><br> She also reports on real estate developments and civic challenges in major urban hubs like Bengaluru, Delhi, and Gurugram. Her coverage frequently explores the struggles of startup founders, inspiring journeys of CEOs, and the experiences of candidates dealing with the complexities of visa processes. <br><br> Kanishka holds an undergraduate degree in Journalism from Delhi University and a diploma from the Indian Institute of Mass Communication. Rarely offline, she spends much of her time scrolling through X, LinkedIn, Reddit, Instagram, and Facebook in search of the next big story. When she finally logs off, she enjoys binge-watching shows and exploring cafes in pursuit of good food and better conversations.
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