As TSMC Factory Opens, Kyushu, Japan Transforms... Which Companies Followed?

[Image source=AP Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] Taiwan's TSMC, the 'number one' semiconductor foundry (contract manufacturing) industry leader, is building a factory in Kumamoto Prefecture, Japan, aiming to start operations by the end of 2024. According to the Nihon Keizai Shimbun, various companies related to manufacturing equipment and other factory facilities are consecutively establishing themselves in the area. The arrival of a single semiconductor factory appears to be significantly expanding various related industrial infrastructures in the region.

According to the report on the 11th, not only Japanese semiconductor manufacturing equipment companies but also financial institutions are entering Kumamoto Prefecture one after another. Nihon Keizai recently stated, "Semiconductor production in Kyushu is expected to increase significantly, and companies related to factory facilities such as semiconductor manufacturing equipment are also expanding their investments," adding, "Movements by Kyushu financial institutions and companies have become active to revive the 'Silicon Island.'"

First, Japan Material, which is responsible for maintenance and management of Japanese semiconductor manufacturing equipment, recently purchased a factory in Kumamoto Prefecture from Mitsui High-tec. This company handles special gases used in semiconductor production, water supply, and equipment maintenance. The reason for acquiring the local factory is that the company has agreed to supply gas facilities to TSMC's new factory in Kumamoto Prefecture. Accordingly, the company plans to move in by this fall to support the operation of TSMC's new factory.

Kanken Techno, which is responsible for exhaust gas treatment devices in the semiconductor manufacturing process, also decided on the 5th to invest 1.5 billion yen to build a new factory in Tamana City, Kumamoto Prefecture, and signed an agreement with the local city hall. Construction is scheduled to start in January next year, with operations planned for August of the same year. This company holds a 21% global market share in exhaust gas treatment for semiconductor manufacturing equipment. It also stated that it signed this contract to maintain and service equipment at the local factory under a contract with TSMC.

Additionally, Jeil Jeonjae Electronics, a specialist in wires and cables for semiconductor manufacturing equipment, and Shinwa Controls, which handles temperature control devices for semiconductor manufacturing, plan to either establish new factories or create repair service bases to secure personnel and support TSMC's factory.

Furthermore, Higo Bank and Kagoshima Bank, regional banks under the Kyushu Financial Group in Japan, signed a memorandum of understanding (MOU) on the 6th regarding business cooperation with Taiwan's Tamayama Commercial Bank. Taking TSMC's entry into Kyushu as an opportunity, the two financial institutions agreed to activate economic exchanges based on their respective networks and know-how. The two banks plan to support each other's overseas expansion, provide industrial support, link financial and non-financial services, and facilitate talent exchanges.

This content was produced with the assistance of AI translation services.