On August 8th, Japan experienced a magnitude 7.1 earthquake with the epicenter located off the coast of Kyushu, in the sea east of Miyazaki Prefecture, at a focal depth of 30 kilometers. TSMC’s Kumamoto plant (JASM), located in Kumamoto Prefecture, experienced a seismic intensity scale of level 4.
As per a report from Commercial Times, regarding the impact of the earthquake, TSMC stated that the seismic intensity scale at the Kumamoto plant did not reach the evacuation threshold and is not expected to impact operations.
The schedule for its Kumamoto fab to start mass production in the fourth quarter remains unaffected, and construction work on the second plant has already begun. Kumamoto Prefecture Governor Takashi Kimura is scheduled to visit Taiwan at the end of August to actively seek a third plant.
TSMC’s first JASM plant in Kumamoto is set to start mass production in the fourth quarter, focusing on 12nm and 16nm processes. Construction work on the site for the second plant began at the end of the second quarter, with the building scheduled to break ground in the second half of the year.
Notably, Takashi Kimura, who took office in April, stated in an report from Bloomberg on May 11th that he would spare no effort to persuade TSMC to establish a third fab in the region, believing that during the preparations for TSMC’s first fab in Kumamoto, the region already possesses better-quality road and water infrastructure and an education system that better supports international school students, which could be advantageous.
Kyushu is a key region for Taiwan’s semiconductor industry. Recently, ASE Group, a leading packaging and testing company, decided to purchase land and establish a plant in Kitakyushu.
Testing company MA-tek, semiconductor materials distributor Topco Scientific, and Gudeng Precision have all set up bases in Kumamoto, while Gudeng is also planning to establish a new plant in Kurume, between Fukuoka and Kumamoto.
TSMC has indicated that most of its production sites, suppliers, customers, and upstream suppliers of semiconductor manufacturing services are located in areas susceptible to natural disasters.
Thus, to mitigate the risks that could lead to operational disruptions, TSMC has reportedly strengthened its ability to effectively respond to these risks through business continuity management to ensure operational resilience across its supply chain.
Commercial Times reported that from the very beginning of construction, TSMC has been reinforcing building structures, facilities, and equipment, along with implementing preventive measures. This is done to ensure that the plant remains undamaged, with no chemical leaks, equipment displacement, or injuries to personnel.
The evacuation standards for JASM are consistent with those of TSMC’s other plants in Taiwan. The recent earthquake did not meet the threshold for evacuation, so it is not expected to impact operations. This event also served as a stress test before mass production begins, the report noted.