TSMC is reportedly considering a significant strategic change for its second factory in Kumamoto, Japan. The company may skip the planned 6nm process and jump directly to advanced 2nm technology. This pivot would shift the new fab's focus from automotive chips to high-performance computing (HPC). The new focus targets major AI customers, specifically NVIDIA and AMD. TSMC has reportedly submitted this internal assessment to Chairman C.C. Wei.
The potential shift is driven by financial performance disparities between its overseas operations. TSMC’s Arizona fab, which produces 4nm chips, has become profitable. Conversely, the first Japan-based fab (JASM) has incurred losses. This loss is attributed to weaker demand for auto chips.
This news comes as the company continues to benefit from soaring AI-driven demand for its advanced nodes. TSMC has not officially confirmed the plan, stating it does not comment on market speculation. The company notes that profitability is influenced by multiple factors.