TSMC aids Kumamoto's resurgence, hailed by Japanese business leader

26 Feb, 2024

TSMC aids Kumamoto's resurgence, hailed by Japanese business leader

In an exclusive interview with CNA, a prominent business leader in Japan's Kumamoto prefecture highlighted the significance of Taiwan Semiconductor Manufacturing Co. (TSMC)'s establishment in the region, heralding it as a pivotal moment akin to the area's historical prominence during the Meiji Restoration in the 19th century.

Scheduled for inauguration on Saturday, the first fabrication plant of Japan Advanced Semiconductor Manufacturing, Inc. (JASM), a subsidiary majority-owned by TSMC, underscores the strategic importance Kumamoto holds in revitalizing the economic landscape of Kyushu.

Chairman Akito Kuga of the Kumamoto Chamber of Commerce and Industry conveyed the aspirations of the prefecture to reclaim its position as a regional powerhouse. Historically, Kumamoto played a vital role as a strategic military stronghold post-Meiji Restoration. However, the economic focus shifted post-World War II, favoring ports like Fukuoka due to foreign trade dynamics.

The establishment of JASM, a collaborative effort between TSMC and Sony, has sparked a resurgence of interest in Kumamoto's industrial potential. This development aligns with the broader trend of major Japanese corporations, including Sony, Mitsubishi Electric, SUMCO, and Kyocera, investing significantly in semiconductor-related ventures across Kyushu.

The momentum generated by TSMC's presence has prompted optimism about a revival of Kyushu's semiconductor industry, prompting some to refer to it as a "reborn silicon island Kyushu." Major players like Fujifilm and Ebara Corporation have expanded their operations in Kumamoto, further solidifying its status as a burgeoning semiconductor hub.

However, Kuga acknowledged the challenges posed by industrial expansion, particularly regarding land use and preserving agricultural interests. Despite these concerns, he expressed a warm welcome to Taiwanese professionals, emphasizing shared values of proactivity, diligence, and optimism between the two cultures.

Looking ahead, Kuga anticipates substantial economic gains from TSMC's investments, with estimates suggesting trillions of yen flowing into the region over the next decade. This influx of capital and expertise positions TSMC as a beacon of hope for Kumamoto's economic renaissance and underscores its pivotal role in shaping Japan's semiconductor landscape.