Japan’s Kumamoto to woo TSMC for semiconductor hub

TAIPEI (TVBS News) — In a bold move to bolster its semiconductor industry, Kumamoto Prefecture in Japan has announced its intentions to court Taiwan Semiconductor Manufacturing Company (TSMC) to establish its third chip factory in the region, Bloomberg reported.  In an interview with Bloomberg on May 11, Takashi Kimura, the newly-elected governor of Kumamoto, revealed plans to visit TSMC's headquarters in Taiwan this summer to discuss the potential for a third factory.

A Strategic Vision for Kumamoto

Kimura's efforts come as TSMC's second plant in Kumamoto is set to begin construction in 2024, located adjacent to the first factory. 

During the interview on Saturday, Kimura expressed his ambition to transform Kumamoto into a hub for semiconductor-related companies and research institutions, mirroring the success of Taiwan's Hsinchu Science Park. He emphasized the strategic importance of attracting enough semiconductor entities to create an industrial cluster akin to that in Taiwan. 

Fostering a High-Tech Ecosystem

Kimura's vision extends beyond merely hosting a new TSMC facility. He aspires for Kumamoto to become a cradle for cutting-edge industries, including artificial intelligence (AI), data centers, and autonomous driving technologies. By drawing parallels with the vibrant ecosystem of Hsinchu Science Park, Kimura aims to position Kumamoto at the forefront of semiconductor-related advancements.

However, concerns about sufficient water supplies for the fabs have prompted Kimura to explore the possibility of utilizing excess water from local reservoirs for the second TSMC plant.