JASM facility evacuated after Kumamoto earthquake
TSMC's Japan Advanced Semiconductor Manufacturing (JASM) subsidiary in Kumamoto Prefecture evacuated employees after a magnitude-7.1 earthquake struck the region at 4:27 p.m. local time on July 28, according to the company. The quake registered a maximum intensity of 7 on Japan's seismic intensity scale, and Kikuyō Town, where the JASM fabrication plant is located, recorded a seismic intensity of upper 5, according to NHK. TSMC said the evacuation was carried out under its emergency response procedures after the quake met its evacuation criteria, adding that employee safety was its top priority. All personnel inside and outside the facility were evacuated and were being accounted for, the company said.
The Japan Meteorological Agency placed the quake at a depth of about 16 kilometers, NHK reported. Authorities were assessing the broader impact while the agency issued a tsunami advisory for affected coastal areas, including the Ariake and Yatsushiro seas off Kumamoto, Fukuoka, Saga and Nagasaki prefectures, which was lifted around 6 p.m. local time.
Industrial response and government action
Sony Group and Fujifilm also evacuated plants in Kikuyo following the same seismic event, according to Nikkei Asia. JASM's construction site was unaffected, but some work was suspended as a precaution against further aftershocks, a TSMC spokesperson told Nikkei. The spokesperson added that the seismic intensity at the JASM site reached the level required for evacuation, prompting the precautionary personnel withdrawal. Strong aftershocks continued for hours after the main quake, with four tremors measuring lower 5 or above recorded by 8 p.m. local time.
Prime Minister Sanae Takaichi said the government had convened an emergency team and urged residents to stay alert for possible quakes of similar scale for about a week. Taiwan President Lai Ching-te expressed condolences in a Japanese-language post on X, saying Taiwan stands ready to assist if needed. Kumamoto was devastated by a series of earthquakes in 2016 that resulted in nearly 300 deaths and extensive infrastructure damage.
TSMC shares slide in regional chip selloff
TSMC's Taipei-listed shares closed down 2.98% at NT$2,280 on July 28, extending losses as part of a broad selloff across Asian semiconductor stocks. The Taiwan Weighted Index plunged more than 4% during the session, falling as low as the 41,600 level, while Taiwanese chip designer MediaTek finished down 9.92%. The selloff reflected mounting doubts about the sustainability of AI infrastructure investment originating in the United States, compounded by Alphabet's disclosure of a free cash flow deficit for the second quarter and Nvidia's recent share-price decline.
Lee Gyeong-min, an analyst at Daishin Securities, attributed part of the regional rot to a shock originating in China, noting that CXMT's listing had reignited fears about expanding Chinese memory chip capacity and intensifying competition over the medium to long term. The analyst said there was a growing perception that capital was rotating into Chinese semiconductors, weakening supply-demand dynamics for Korean and Taiwanese memory producers.
Regional market turbulence and follow-up signals
South Korea's KOSPI triggered a circuit breaker for the eighth time in 2026 on July 28, with the Korea Exchange activating a 20-minute trading halt after the index fell 8.02% to 6,213.51. The Herald Business reported the Kospi ultimately plunged more than 10% on the day, with Samsung Electronics closing down 13.39% at 220,000 won and SK hynix falling 14.65% to 1.55 million won. Japan's Nikkei 225 dropped more than 4% and semiconductor equipment makers such as Tokyo Electron, Renesas, and Advantest each fell more than 10%. Kioxia Holdings led regional declines, plunging more than 18%.
The next verifiable milestones for TSMC are the company's post-event assessment of earthquake damage at JASM and the resumption of suspended construction work, alongside any operational update on production impact and any disclosure of post-quake financials in subsequent board filings. Investors will also watch the Taiwan Stock Exchange's next session for any further aftershock in regional semiconductor valuations.
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