Core Viewpoint - TSMC's construction timeline for its Kumamoto second factory in Japan has been delayed primarily due to a decline in market demand from major clients, alongside transportation issues [3][4]. Group 1: TSMC's Kumamoto Factory - The Kumamoto second factory is crucial for Japan's semiconductor industry revival, with partners including Sony and Toyota's Denso [3]. - The first Kumamoto factory began mass production at the end of last year, utilizing 22/28 and 12/16 nm processes, with a maximum monthly capacity of 55,000 wafers [3]. - The construction of the second factory was initially scheduled for Q1 this year but has been postponed to later this year, with production expected to start in 2027 using a 6 nm process, which is Japan's most advanced technology [3][4]. Group 2: Market Conditions - TSMC's chairman noted that the delay is influenced by local traffic issues and a soft market for consumer and automotive products, particularly impacting demand for image sensors [3]. - The company is adjusting its capacity expansion based on market and customer demand, indicating that even if construction begins this year, the timeline for production will depend on client needs [3]. Group 3: Financial Projections - TSMC's Japanese subsidiary president stated that the company expects to generate over $4 billion (approximately 580 billion yen) in revenue from the Japanese market in 2024, accounting for about 4% of TSMC's total revenue [4]. - The projected wafer shipment volume (converted to 12-inch equivalents) is expected to exceed 1.49 million wafers, representing around 10% of the overall shipments [4].