Benzinga·2025-12-11 12:53Core Viewpoint - Taiwan Semiconductor Manufacturing Co. (TSMC) is considering producing its advanced 4-nanometer chip at its second plant in Japan to address the rising demand for AI-related products [1][4]. Group 1: Shift Towards Advanced Chips - The Kumamoto plant, initially designed for 6-nm and 7-nm chips, may undergo a transition to 4-nm technology, which could lead to design revisions and a delay in the plant's launch, currently scheduled for 2027 [2]. - Construction at the Kumamoto plant has been paused, and TSMC is also delaying new equipment installation at its existing plant, which produces mature chips for various applications [3]. Group 2: Demand for AI Chips - TSMC's potential shift to 4-nanometer production is a direct response to the surging demand for AI products, with plans to expand 2-nanometer chip production from seven to ten fabs, supported by a $28 billion investment [4]. - Major tech companies, including Nvidia, Google, Amazon, and MediaTek, are driving this demand, leaving TSMC with no spare capacity despite its expansion efforts [5]. Group 3: Financial Performance - TSMC reported NT$343.61 billion ($11.01 billion) in net revenue, reflecting a 24.5% year-over-year increase but a 6.5% decrease month-over-month. For the period from January to November, revenue reached NT$3.47 trillion ($110 billion), marking a 32.8% year-over-year increase [7]. - Year-to-date, TSMC's stock has increased by 53.85%, although it experienced a 2.22% decline recently, closing at $310.14 [8].