Phase transformation of TiSi$_2$ confined in sub-micron area of which the size is around or smaller than the grain size of C49 TiSi$_2$ phase is studied. It has been known that the C49 to C54 phase change is massive transformation that occurs abruptly starting from C54 nuclei located at triple point grain boundaries of C49 phase. When the C49 phase is confined in sub-micron area, however, the massive phase transformation is observed to be hindered due to the lack of the triple point grain boundaries of C49 phase. Heat treatment at higher temperatures starts to decompose the C49 phase, and the resulting decomposed Ti atoms diffuse to, and react with, the underneath Si material to form C54 phase that exhibits spherical interface with silicon. The newly formed C54 grains can also trigger the massive phase transformation to convert the remaining undecomposed C49 grains to C54 grains by serving as nuclei like conventional C54 nuclei located at triple point grain boundaries.