Japan earthquake shakes Kumamoto, city anchoring TSMC's ₹1.91 crore expansion

Taiwan Semiconductor Manufacturing Company (TSMC) resumed operations at its semiconductor plant in Kumamoto on Tuesday evening, just hours after a 7.1 magnitude earthquake forced workers to evacuate the site. The earthquake disrupted production across the region and killed at least 13 people in southern Japan.

Employees at Japan Advanced Semiconductor Manufacturing (JASM) were uninjured and the device passed structural safety checks, according to a company statement cited by Reuters. Engineers are continuing to closely inspect the facility to determine if production has been affected.

The earthquake also disrupted operations at several other major manufacturers. Reuters reported that Tokyo Electron halted production at its two plants in Kumamoto until Wednesday, while Sony and Fujifilm evacuated their employees. Honda also temporarily suspended operations at its motorcycle manufacturing plant in the prefecture.

Why Kumamoto is important to the global chip industry

Quick answers to key questions

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A 7.1 magnitude 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 an important semiconductor manufacturing center in Japan, home to major companies such as TSMC and Sony, and producing essential components for various industries, including automobiles, electronics, and artificial intelligence.

TSMC’s establishment of Japan Advanced Semiconductor Manufacturing (JASM) has significantly expanded Kumamoto’s semiconductor capabilities with a planned investment exceeding US$20 billion and a focus on high-end chip production.

The first factory at JASM produces semiconductors using processes such as 12- to 40-nanometer technologies, while the second factory is to produce more advanced 3-nanometer chips for high-performance applications.

Sony is a key investor in JASM and a major semiconductor manufacturer in the region, which uses its image sensors in a variety of applications, while also exploring a joint venture with TSMC to develop next-generation sensors.

The temporary closure of a factory in one Japanese prefecture is attracting worldwide attention as Kumamoto has become one of Japan’s most important semiconductor manufacturing centers.

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The region is home to companies that make 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 the arrival of TSMC—Sony made image sensors there and Tokyo Electron made chip-making equipment—the Taiwanese chipmaker has greatly expanded the region’s strategic importance.

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How TSMC expanded its presence in Japan

TSMC established 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 began in late 2024, according to TSMC’s 2025 annual report.

In announcing the project, TSMC said the combined investment in its two Kumamoto facilities would exceed US$20 billion ( ₹1.91 lakh crore), with an expected production capacity of over 100,000 12-inch wafers every month.

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The investment transformed Kumamoto into a major semiconductor center by bringing together the world’s largest contract chip manufacturer, one of the leading image sensor manufacturers and a major semiconductor device manufacturer under the same industrial cluster.

What kind of chips are produced in the plants?

JASM’s first factory produces semiconductors using several manufacturing technologies, including 12-, 16-, 22-, 28-, and 40-nanometer processes.

While not the most advanced chips in the industry, they remain essential for vehicles, industrial equipment, consumer electronics and other products that require reliable, long-lasting components.

The second factory was originally planned to produce 6- and 7-nanometer chips. However, in February 2026, TSMC CEO CC Wei announced that it would instead produce 3-nanometer semiconductors to meet the rapidly growing demand for AI.

Three-nanometer chips are widely used in high-performance processors and AI servers. Currently, most of TSMC’s high-end chips continue to be manufactured in Taiwan.

Japan’s Yomiuri newspaper estimated that the revised Kumamoto project would cost around $17 billion. Reuters reported that while TSMC confirmed the transition to 3-nanometer production, it declined to comment on the investment estimate.

Sony’s growing 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 Sony, it accounts for approximately 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 plant in Koshi City, Kumamoto. The proposed venture would focus on the development and production of next-generation image sensors for industries including automotive technology and robotics.

Sony would retain control of the business if a final binding agreement was reached.