In 2024, TSMC unveiled its plan to construct a second wafer fabrication plant in Kumamoto Prefecture, Japan. Initially, the plant was slated to manufacture 6nm and 7nm chips, aiming to cater to the burgeoning demands in areas like autonomous driving, AI, and other high - tech sectors.

However, a mere less than two months into the construction phase, the project came to an abrupt halt. Heavy - duty machinery was removed from the site, and suppliers were issued notices to cease all work.

According to insider reports, the Kumamoto Second Factory is considering skipping the 4nm production process altogether and making a direct leap to 2nm. This strategic move is driven by the need to fulfill the requirements of AI chip customers, prominent among whom are industry giants like NVIDIA and AMD.

This adjustment is a clear reflection of the semiconductor industry's overarching trend towards embracing more cutting - edge manufacturing processes. Moreover, it underscores the profound and far - reaching impact that the soaring demand for AI has on the entire supply chain.