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

The JASM Kumamoto first plant 

Disclosed investments by companies total JPY 4.74 trillion, with estimates including undisclosed amounts reaching JPY 5 trillion. TSMC's presence in Kumamoto Prefecture has drawn investments from local materials, logistics, and other companies.

Kyushu, a major hub for Japan's semiconductor industry, is often called "Silicon Island," akin to Silicon Valley in the U.S.

Data from the Kyushu Bureau of Economy, Trade, and Industry shows 100 semiconductor-related projects in Kyushu from April 2021 to June 2024, with 72 disclosing investment amounts. Kumamoto Prefecture leads with 52 projects, followed by Fukuoka Prefecture with 15. TSMC's Kumamoto plants (Plant 1 and Plant 2) account for over 60% of the total investment.

TSMC's combined investment in 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.

Sony started building 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, for 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 highlights future attention on whether Taiwanese companies with existing TSMC business relationships will invest in Kyushu.

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

About Japan Advanced Semiconductor Manufacturing, Inc. (JASM)

Japan Advanced Semiconductor Manufacturing, Inc. (JASM) is a group company located in Kumamoto Prefecture, majority-owned by TSMC, and jointly announced by TSMC and Sony Semiconductor Solutions Corporation (SSS) in November 2021. JASM aims to meet the global demand for semiconductors by offering contract manufacturing services starting with 22/28nm processes and 12/16nm FinFET processes. SSS participates as a minority shareholder in JASM. Additionally, in February 2022, DENSO Corporation announced a minority investment of approximately JPY 40 billion. The construction of JASM's foundry in Japan began in 2022, with production expected to commence by the end of 2024.

Editor：Lulu

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