Reports indicate TSMC's Japanese subsidiary JASM will “likely skip 4nm and directly target 2nm process technology” for its second fab.
Taiwanese media outlet Mirror Weekly reported yesterday that TSMC's Japanese subsidiary JASM will “likely skip 4nm and directly target 2nm process technology” for its second fab.
Originally planned to build a 6nm process foundry line, JASM's second fab now faces economic uncertainty. TSMC's existing 6nm lines currently operate at only 60-70% capacity utilization, making further expansion of 6nm production economically questionable.
Meanwhile, due to sluggish demand from Japanese automakers, automotive semiconductor orders remain limited. JASM's first fab continues to operate at a loss, prompting TSMC to adopt a more cautious approach in considering JASM's operational direction.
Shifting to a 4nm production line would also face the challenge that by the time it is completed in 2027-2028, the peak demand for the 5/4nm generation will have passed. Against this backdrop, TSMC has internally prepared an analysis report on the possibility of converting JASM's second fab to 2nm, awaiting Wei Zhejia's decision.
However, adopting 2nm technology for JASM's second fab presents several critical challenges: First, it conflicts with Rapidus' strategic positioning; second, Japan lacks significant domestic demand for 2nm technology, raising doubts about potential government financial support; additionally, restrictions on advanced technology transfers pose further obstacles.