According to data from the Kyushu Bureau of Economy, Trade, and Industry, from April 2021 to June 2024, there have been 100 new semiconductor-related investments announced or reported, covering areas such as semiconductor materials and logistics. Among these, TSMC's investment in Kumamoto Prefecture, Kyushu, stands out as the largest.
Of these 100 semiconductor investments, 72 have disclosed their investment amounts, totaling JPY4.74 trillion (approx. US$30.2 billion). With additional undisclosed investments, the total is projected to reach around JPY5 trillion.
TSMC's investment through its Japanese subsidiary JASM in Kikuyo, Kumamoto, constitutes roughly 60% of this total. Kumamoto Prefecture leads with 52 projects. It's followed by Fukuoka, Kyushu's most populated prefecture, at 15.
JASM's first wafer fab is scheduled to commence mass production by the end of 2024, and construction of a second fab is set to begin soon, with mass production anticipated to start in 2027. The combined investment for both fabs exceeds US$20 billion, supported by Japanese government subsidies up to JPY1.2 trillion. This represents the largest semiconductor investment recorded by the bureau to date.
Other notable investments include Sony's new CMOS image sensor (CIS) factory in Koshi, Kumamoto, which will expand its site from 270,000 to 370,000 square meters by February 2024 to accommodate the growing demand for CIS technology.
Rohm is investing JPY289.2 billion in a new silicon carbide (SiC) power semiconductor factory in Kunitomi, Miyazaki, with operations targeted to begin by the end of 2024. This expansion will involve collaboration with Toshiba on power semiconductors.
Mitsubishi Electric is building a new SiC power semiconductor plant in Kikuchi, Kumamoto, introducing a new 8-inch wafer production line with an investment of approximately JPY100 billion. The start of production has been advanced to November 2025 from the originally planned April 2026.
Sumco is investing around JPY400 billion in Kyushu. This includes a JPY200 billion expansion in its factories located in Imari, Saga, and Omura, Nagasaki, along with an additional JPY225 billion for a new site in Saga. The project has secured up to JPY75 billion in subsidies from Japan's Ministry of Economy, Trade, and Industry (METI) and is expected to begin production by 2029.
Mitsubishi Chemical plans to establish a factory for ArF photoresists in Fukuoka, northern Kyushu, with an estimated cost of several billion yen.
TSMC's significant investments in Kyushu are attracting semiconductor suppliers to the region, including large firms like Mitsubishi Chemical Group. Dowa Eco-System, a subsidiary of the Dowa Group, is investing about JPY5 billion in a facility in Uki, Kumamoto, to recycle defective semiconductor materials and electronic component packaging, repurposing the precious metals within them.
Still, JASM focuses on frontend manufacturing with backend processing potentially occurring outside Japan.
