Kumamoto Earthquake Disrupts Semiconductor Supply Chain; TSMC Factory Resumes, TEL Kyushu Plant Halts

A 7.1-magnitude earthquake struck Kumamoto Prefecture on July 28, followed by a 5.8-magnitude aftershock on the evening of July 29. As of July 29, the earthquake has left at least 18 dead, many injured, numerous houses collapsed, and caused widespread power outages and transport disruptions.

TSMC's Japan Advanced Semiconductor Manufacturing (JASM) factory in Kikuyo-cho, Kumamoto, immediately activated emergency response procedures and evacuated all employees after the quake. Inspections confirmed that the main building structure was safe, and water, power, and safety systems were functioning normally. The company has allocated resources to support its Japan operations, and raw material supply continues.

The second TSMC Kumamoto factory, under construction on adjacent land, sustained no damage. Construction work has resumed after completing safety checks. The first factory began mass production in December 2024, primarily producing 12-28nm process chips for automotive, consumer electronics, and industrial customers. The second factory is scheduled to start advanced process mass production in 2028.

The Kumamoto factory accounts for about 3% of TSMC's total capacity. Separately, Tokyo Electron Kyushu, a subsidiary of Tokyo Electron Ltd. (TEL), halted production for the entire day on July 29. The subsidiary is responsible for the design and manufacture of coating and developing equipment, cleaning systems, and 3D packaging equipment. It holds a 91% global market share in coating and developing equipment, and the Kumamoto plant is the group's sole production base.