Taiwan Semiconductor Manufacturing is gradually resuming operations at its Japanese facility after a major earthquake, though it continues to conduct thorough inspections and assess the impact on the plant located in southern Japan.

The world's largest contract chipmaker confirmed that the 7.0-magnitude earthquake, which struck southern Japan on Tuesday, prompted a full evacuation of all personnel at the site. The company stated in an announcement that all employees are safe and accounted for. The primary structure of the factory building remains secure, but a comprehensive review and damage assessment are currently underway.

It has not yet been confirmed whether the wafers and production equipment inside the facility sustained any damage.

Taiwan Semiconductor Manufacturing's Kumamoto factory, located in the southern part of Kumamoto Prefecture, began commercial production in 2024. The company is simultaneously constructing a second plant nearby, which will utilize advanced manufacturing processes. The company reported that the construction site for the second factory was not damaged by the earthquake. However, as a precaution against potential aftershocks, some construction work at the site has been temporarily suspended.

The establishment of the Kumamoto facility is a key component of the Taiwanese company's supply chain diversification strategy. This move aims to mitigate geopolitical risks while also better serving the needs of local Japanese customers, including major automotive manufacturers.