[日 ‘반도체 재건’ 속도전]
Japan’s ‘semiconductor reconstruction’ speed battle… TSMC Kumamoto factory local report
Advance by more than 3 years with 24-hour construction
Completion ceremony on the 24th… Mass production begins at the end of the year
Kishida “Semiconductor infrastructure power support”
Kikuyo Town, Kumamoto Prefecture, Japan on the morning of the 15th. Beyond the idyllic cabbage fields, a huge white-walled building catches the eye. A four-letter sign reading ‘jasm’ hangs on the exterior wall of the factory, which takes 15 minutes by car from Kumamoto Airport. It is the name of the Japanese subsidiary of Taiwan’s TSMC, the world’s largest semiconductor consignment manufacturing (foundry) company.
The TSMC Kumamoto plant, which the Japanese government supported with the goal of ‘rebuilding the semiconductor industry’, has finally been revealed. The Japanese government invested an unprecedented amount of subsidies of 476 billion yen (about 4.23 trillion won). Taiwan’s state-run Central News Agency reported that TSMC founder Maurice Chang is likely to attend the completion ceremony on the 24th. In Japan, Prime Minister Fumio Kishida and Princess Kako, niece of the Emperor of Japan, are known to be attending.
Nine days before the completion ceremony, final work was being done outside the factory, such as washing windows and tending the garden near the main entrance. Kohei Sakamoto (坂本恒平), manager of Kikuyo Semiconductor Industry Support Office, said, “The completion ceremony will be held next week, but plant operations have already begun.”
The completed TSMC Kumamoto plant will produce 12, 16, 22, and 28 nm (nanometers, one billionth of a meter) level process products to be used in cameras and automobiles starting at the end of this year. Simultaneously with the start of mass production, construction of a second 6-nano production plant will begin. In addition to the $7 billion (approximately 9.35 trillion won, including government subsidies) invested in Factory 1, a total of $20 billion (approximately 26.7 trillion won) will be invested. The Japanese government has rolled up its sleeves to attract investment from overseas semiconductor companies, including TSMC’s second factory. Prime Minister Kishida said, “We will do our best to support infrastructure investments required for strategic business (semiconductors, secondary batteries, etc.).” Based on this, Japan’s largest economic organization, Keidanren, set a goal of achieving domestic facility investment of 115 trillion yen (approximately 1,022 trillion won) by 2027.
A rural village with a population of about 40,000 people is in ‘change of fortune’… Among 1,700 employees, 400 are expatriates in Taiwan.
“Economic ripple effect 178 trillion won over 10 years”
TSMC “Thanks Japan”… Technology transfer begins in earnest
Panoramic view of the Taiwanese semiconductor company TSMC factory in Kikuyo Town, Kumamoto Prefecture, Japan on the 15th. A sign with the name of the Japanese local corporation, ‘Jasm’, was hung on the exterior wall of the factory built next to the cabbage field. Japan’s leading semiconductor-related companies, such as Sony and Tokyo Electron, are concentrated here. Kumamoto = The construction of the TSMC Kumamoto plant was a race of speed unprecedented in Japan. Initially, it was said that it would take 5 years, but it was decided to advance the project by 3 years and complete it within 2 years. Afterwards, construction was carried out 24 hours a day, 365 days a year, shortening the completion time by two months and completing the project in 22 months. Considering that pilot production began at the end of last year, the factory was actually built in 20 months.
The first stage of equipment import and installation work was already completed at the end of last year, and test production began. The original mass production plan for the end of this year (55,000 12-inch wafers per month) is expected to be ahead of schedule.
TSMC investment is not a single project that ends with completion on the 24th. Simultaneously with mass production of 12-28 nanometers at the end of this year, construction of the second 6-nano plant will begin, and mass production of the second plant will begin in 2027. Construction of a third factory is also being considered. The plan is to expand the field not only to vehicles but also to supercomputers. If the TSMC plant is added to the already world-class semiconductor materials and equipment production capacity, Japan will immediately have a world-class semiconductor industry infrastructure.
About 1,700 people work directly at the Kumamoto TSMC plant. Of these, 400 are expatriates from Taiwan. A Kiku Fairy official said, “If you include the families of expatriates, 750 people came.” TSMC and its partners have prepared housing and dormitories in various locations for employees from Taiwan and other parts of Japan. One entire apartment building was also leased.
The area around the factory was bustling with activity. Even though it was a weekday, there were no empty seats at a Korean restaurant located a 5-minute drive away from the factory. The owner, who lived in Osaka and opened a business last year, said, “It is the most profitable neighborhood in Japan these days. “We hired a new part-time worker yesterday,” he said. Semiconductor-related factories such as Sony, Tokyo Electron, and Air Liquide are concentrated near the TSMC plant.
Kikuyo-cho is a rural village with a population of about 41,000, but along the four-lane main road, there are large Japanese discount stores like ‘AEON’ and the largest furniture store called ‘Nitori’. Kumamoto Airport, which suffered damage from the 2016 earthquake, opened a new passenger terminal in March last year.
Japan’s Kyushu Economic Research Association predicted that the economic impact of the TSMC semiconductor plant will exceed 20 trillion yen (approximately 178 trillion won) over 10 years. Kumamoto Governor Ikuo Kabashima said at a press conference last month, “This is a great opportunity that comes once every 100 years for the region.” Kumamoto Prefecture will also host the ‘Industrial Revival Expo’ on the 28th, in which a large number of semiconductor companies will participate.
TSMC was satisfied with Japan, which actively supported factory construction. TSMC CEO Wayser presented a special commendation to Japan’s Kashima Construction, which built the factory last year, and said, “Thank you for your outstanding contribution.” Founder Maurice Chang also said at a press conference last year, “Japan is an ideal place for semiconductor manufacturing. “There is plenty of land, water, and electricity, and the work culture is good,” he said.
Technology transfer and cooperation also began in earnest. According to the Nippon Keizai Shimbun, about 200 Sony semiconductor engineers were dispatched to the TSMC plant in Taiwan last year to receive training on manufacturing facility management. Sony is said to have shown great interest in utilizing TSMC’s artificial intelligence (AI).
There is an assessment that TSMC is rushing to expand its new factory in Kaohsiung, Taiwan and build a second factory in Japan to prepare for uncertainty in the United States. The operation of TSMC’s second plant in Arizona is likely to be delayed from 2026 to 2028. This is because the U.S. government has not confirmed the size of the subsidy, and local workers and politicians are protesting over the dispatch of personnel to Taiwan.
Kumamoto =
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.