TSMC’s 2nd Japan Plant Expected to Benefit Kumamoto Economy; Toyota to Bolster Supply Chain with 2% Stake in Chipmaker Subsidiary

The Yomiuri Shimbun

15:09 JST, February 10, 2024

Economy, Trade and Industry Minister Ken Saito expressed hope on Friday that Taiwan Semiconductor Manufacturing Co.’s plan to build a second plant in Kumamoto Prefecture “will have a large ripple effect on the local economy.”

Saito also expressed his willingness to consider providing support if TSMC requests it.

TSMC announced Tuesday it plans to begin construction on the plant, which will produce 6- to 7-nanometer semiconductors, by the end of 2024.

Toyota Motor Corp. will have a 2% stake in Japan Advanced Semiconductor Manufacturing, a subsidiary of TSMC that will operate the plant.

“The investment by Toyota, which is a major consumer of semiconductors, will help strengthen Japan’s automotive supply chain,” Saito said.

As semiconductor-related companies, including TSMC, have started building factories and other facilities in the area, it has resulted in a shortage of land for corporate use, leading to farmland being converted for such purposes.

“We will consider providing the necessary support so that farmers can continue their businesses,” said Agriculture, Forestry and Fisheries Minister Tetsushi Sakamoto at a press conference on Friday.

Sakamoto also expressed his intention to work with the Kumamoto prefectural government.