[News] TSMC Effect: 100+ Semiconductor Investments in Kyushu, Totaling JPY 5 Trillion

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According to a report from Nikkei on July 23rd, since 2021, the establishment of TSMC’s plants has potentially spurred over 100 semiconductor-related investment projects in Kyushu, known as Japan’s “Silicon Island.”

The disclosed investment amount by companies alone reaches JPY 4.74 trillion, and when including undisclosed investments, it is estimated to reach JPY 5 trillion. TSMC’s establishment in Kumamoto Prefecture has attracted investments from local material, logistics, and other companies.

Kyushu is a major hub for Japan’s semiconductor industry and is often referred to as “Silicon Island,” mirroring the name of Silicon Valley in the United States.

Reportedly, according to data compiled by the Kyushu Bureau of Economy, Trade, and Industry, there have been 100 semiconductor-related investment projects in Kyushu from April 2021 to June 2024, with 72 of these projects disclosing their investment amounts. Kumamoto Prefecture leads with 52 projects, followed by Fukuoka Prefecture with 15 projects. TSMC’s Kumamoto plants (Plant 1 and Plant 2) account for over 60% of the total investment amount.

The combined investment in TSMC’s Kumamoto Plant 1 and Plant 2 exceeds USD 20 billion, with the Japanese government providing up to JPY 1.2 trillion (roughly USD 7.7 billion) in subsidies for these two plants.

In addition, Sony began constructing a new image sensor plant in Koshi, Kumamoto Prefecture, in April. Rohm plans to invest JPY 300 billion in a new plant in Kunitomi, Miyazaki Prefecture, to produce power semiconductors and other products. SUMCO, a major silicon wafer manufacturer, will invest over JPY 400 billion in Kyushu to expand existing plant capacity and build a new factory in Yoshinogari, Saga Prefecture.

The report further highlights that future attention will be focused on whether Taiwanese companies with existing business relationships with TSMC will follow suit and invest in Kyushu.

TSMC’s plant in Kikuyo, Kumamoto Prefecture (Kumamoto Plant 1), is expected to begin mass production in Q4 (October-December) of this year, utilizing 28/22nm and 16/12nm process technologies with a monthly production capacity of 55,000 wafers. Kumamoto Plant 2 is scheduled to start construction at the end of 2024 and begin operations by the end of 2027, focusing on 6/7nm technology. The combined monthly production capacity of Kumamoto Plant 1 and Plant 2 is estimated to exceed 100,000 wafers.

Read more

• [News] TSMC’s Kumamoto Fab 2 Reportedly Begins Land Preparation
• [News] Kumamoto Vying for TSMC’s Third Fab, Looking to Build Semiconductor Hub

(Photo credit: TSMC)