As per a report from Nikkei News, TSMC is mulling over an upgrade for its Fab 23 Phase II, which is currently under construction in Kumamoto, Japan. The plan is to incorporate N4 (4nm) process technology to manufacture more cutting - edge chips. This strategic move is in response to the soaring demand for AI chips. You see, the 4nm process has emerged as the go - to option for AI chips due to its outstanding performance and energy efficiency.

Originally, the plan for this facility was to produce 6nm and 7nm chips. However, with the ever - changing market dynamics, TSMC has made the decision to upgrade the process. It's true that this upgrade could potentially cause project delays and necessitate design modifications. But TSMC has already kicked off the relevant adjustments. After assessing the domestic demand in Japan, the company will determine whether to revise the overall plan.

At present, construction at the site has come to a virtual standstill. If the adjustments are confirmed, the originally projected start of production in 2027 might be pushed back.