The world’s largest chipmaker, Taiwan Semiconductor Manufacturing Co. (NYSE:TSM), is reportedly contemplating producing its more advanced 4-nanometer chip at its second plant in Japan to meet the escalating demand for AI-related products.

Shift Towards Advanced Chips

The plant in Kumamoto, which commenced construction in late October, was initially intended for 6-nm and 7-nm chips. A smaller nanometer size typically signals a more advanced, more powerful chip.

The possible transition could force design revisions and delay the plant's launch, currently planned for 2027, according to a report by Nikkei Asia on Thursday. Construction at the second Kumamoto plant has already been paused, with heavy machinery being removed from the site. TSMC is also delaying the installation of new equipment at its current Kumamoto plant, which makes mature chips for industrial, consumer electronics, and automotive uses, the report said.

TSMC often pauses projects to adjust for market shifts, as seen in Kaohsiung, where it revamped plans from 6-nm and 28-nm production to more advanced 2-nm technology.

The company did not immediately respond to Benzinga‘s request ...