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$ 8.6 Billion to be invested in Semiconductor Plant in Kumamoto Prefecture

19:42 | 15/05/2022

(Construction) - One trillion-yen project by the private sector has been launched in Kumamoto Prefecture. JASM, a subsidiary of Taiwan Semiconductor Manufacturing Corporation (TSMC), one of the largest contract manufacturer of semiconductors, has signed an agreement with Kikuyo Town, Kumamoto Prefecture, on April 19.

A plant with a building area of 72,200 square meters will be constructed in the plot of 23.1 hectares at No. 2 Haramizu Industrial Park. Construction will begin on April 21st, and the plant is scheduled to start operation in December 2024. The plant is scheduled to start operation in December 2024.

$ 8.6 Billion to be invested in Semiconductor Plant

Governor of Kumamoto Prefecture Ikuo Kabashima was present at the signing ceremony held at a hotel in Kumamoto City and witnessed the signing between President Yuichi Hotta of JASM and Mayor Mitsuo Goto. The investment in the TSMC project will be made by Kanagawa Prefecture-based Sony Semiconductor Solutions and Aichi Prefecture-based auto components maker Denso Corporation. The investment amount is approximately US$8.6 billion, or more than one trillion yen at the current exchange rate. The plant is expected to employ 1,700 new workers.

Construction contractor Kajima is currently undertaking a land development at the project site from August last year until the end of July. The buildings to be constructed will consist of the main factory building, an office building, and several other facilities.

The Japanese government plans to subsidize TSMC's factory construction by up to one-half based on the revised 5G Promotion Law. The prefecture and the town also plan to support the construction of roads and railways to improve transport convenience, as well as the land readjustment project in front of the nearby JR station. (2022/0/20)

The Daily Engineering and Construction News of Japan


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