09 September 2024
According to industry sources, the Kumamoto plant of Taiwan Semiconductor Manufacturing Company (TSMC) is projected to inject US$77 billion into the Kumamoto (Japan) economy over the next decade.
A Kyushu Financial Group report released on September 5 reveals that these economic gains are nearly twice the amount forecasted last year, as reported by Nikkei Asia. Since November 2021, Kumamoto has seen new investments from 171 companies, a notable rise from 90 in earlier analyses, according to CNA.
Additionally, the economic impact is expected to increase average wages in Kumamoto by 380,000 per capita, according to TrendForce. TSMC plans to start construction on its second plant by the end of 2024, with operations anticipated to begin in 2027.
Kumamoto’s rapid expansion is also supported by government subsidies. The Japanese government has so far allocated about 1.1 trillion yen in subsidies for TSMC’s two plants.
In response to the traffic congestion caused by the influx of industrial workers, the local government is planning to develop new transportation infrastructure.