The creation of the TSMC factory helped attract about 100 investment projects in the semiconductor industry to the Japanese island of Kyushu

In the fourth quarter of this year, TSMC’s new facility in Japan will begin serial production of semiconductors using process technologies from 28 nm to 12 nm. According to official statistics, the total number of investment projects in the semiconductor sector implemented on the island of Kyushu from April 2021 to June 2024 reached 100, and the amount of attracted investments reached $32 billion.

Image source: Micron Technology

As you know, TSMC and its Japanese partners represented by Sony and Denso are planning to build at least two joint ventures on the island of Kyushu in Kumamoto Prefecture. These two objects alone accounted for more than 60% of the volume of investments directed to the region since April 2021. Of the hundreds of investment projects, details about the amounts invested are available for 72. In Kumamoto Prefecture, a total of 52 projects are being implemented, followed by Fukuoka Prefecture with 15 projects. Not only TSMC contractors and partners, but also independent companies are building their enterprises on the island of Kyushu. At the very least, power electronics manufacturer Rohm intends to invest about $1.9 billion in the construction of its plant in Miyazaki Prefecture.

In total, about $20 billion will be invested in the construction of two TSMC enterprises in Japan, of which the country’s authorities will compensate about $7.7 billion in the form of subsidies, which is quite a lot by the standards of the global industry, and generally unprecedentedly generous for Japanese projects. Sony began building its image sensor manufacturing facility in Kumamoto in April because it is participating in a joint venture with TSMC specifically for access to the ability to produce related components. Silicon wafer supplier Sumco is committing $2.6 billion to related projects, not only expanding its existing facilities on the island of Kyushu, but also intending to build a new one.

TSMC’s first facility on the island will be able to produce up to 55,000 silicon wafers per month, working at 28, 22, 16 and 12 nm process speeds. The second will begin construction at the end of this year, it will be built by the end of 2027 and will be able to produce 7-nm and 6-nm products. Both enterprises together will be able to process 100,000 silicon wafers per month.