A powerful 7.1 magnitude earthquake in Japan's Kumamoto Prefecture briefly sparked concerns about semiconductor supply chain disruptions. However, Taiwan Semiconductor Manufacturing has begun a phased resumption of operations at its local wafer fabrication facility. The structural integrity of the factory building has been confirmed, and the main components of the expansion project remain undamaged, suggesting the risk of supply interruptions has not yet escalated.

According to reports on July 29, Taiwan Semiconductor Manufacturing stated on Tuesday that, following the earthquake, all personnel at the Japan Advanced Semiconductor Manufacturing (JASM) facility in Kumamoto Prefecture have been safely evacuated. Preliminary inspections revealed no significant damage to the main building structure. The company is now proceeding with a planned, phased restart of production. Engineering teams are continuing to conduct detailed checks on equipment and are evaluating the earthquake's actual impact on manufacturing operations.

Japan's Prime Minister Sanae Takaichi reported at the prime minister's office on the 29th that, as of 8:30 AM local time, the death toll from the Kumamoto earthquake had reached 13. The quake has caused numerous injuries, multiple building collapses with people trapped, as well as widespread power outages and transportation disruptions.

Despite the impact on local infrastructure, Taiwan Semiconductor Manufacturing indicated that the construction site for the Kumamoto factory's expansion project was not damaged in the earthquake. As a precaution against potential aftershocks, some construction work has been temporarily halted. Operations will resume only after safety has been confirmed.

The Kumamoto factory, which officially commenced production this year, is a key project in Taiwan Semiconductor Manufacturing's overseas manufacturing expansion strategy and serves as a critical pillar for Japan's efforts to strengthen its domestic semiconductor supply chain. Following the earthquake, the market was initially concerned about potential disruptions to advanced process capacity. However, based on currently disclosed information, both the main factory building and the expansion project remain intact. With production already resuming in phases, the actual impact of this earthquake on the global semiconductor supply chain is expected to be relatively limited.