Since 2021, Japan’s Kyushu Island has recorded more than 100 semiconductor-related capital investments after Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) made the decision to build a chip fab in the region.
According to a report from Nikkei, the total investment in these projects represents about $32 billion with TSMC being the largest with its planned $20 billion for two fabs with the support of Japanese vendors Toyota, Denso, Sony Semiconductor Solutions and subsidies from the Japanese government.
Of the more than 100 chip-related investment projects in Kyushu from 2021 to June 2024, about 52 projects are centered in Kumamoto Prefecture, followed by Fukuoka Prefecture with 15 projects. The two fabs from TSMC in Kumamoto account for more than 60% of the total investment in that sector, according to information from Kyushu’s Bureau of Economy, Trade and Industry.
Attracting investment
As previously reported, TSMC’s Japan Advanced Semiconductor Manufacturing (JASM) joint venture that is build the fabs in Japan has encouraged numerous new companies to also establish roots in the region with accompanying investments.
This kicked off a funding spree in the region with Sony constructing a new image sensor plant in Koshi, Kumamoto Prefecture. Late last year, Rohm said it would build a silicon carbide plant in the Kunitomi, Miyazaki Prefecture, its first in the country. Rohm is investing $1.9 billion in the new plant. Sumco, a major silicon wafer manufacturer, will invest more than $2.5 billion in Kyushu to expand existing plant capacity and build a new factory in Yoshinogari, Saga Prefecture.
Market research firm Trendforce called Kyushu, or “silicon island,” one of the three chip hotspots in Japan due to the TSMC plant and the momentum that it caused in the region. However, prior to TSMC, Sony and Sumco were gearing up in the region after already establishing a foothold along with other small and medium-sized chip vendors.
