Kumamoto
TSMC's ¥2.85 trillion fabs transforming Kyushu: ¥23T economic spillover projected, IC production hit ¥1T in 2024. 2026: groundwater stress vs. AI chip ambitions.
Kumamoto exists because TSMC chose it—and that choice is reshaping Kyushu's entire economy. In 2024, Taiwan Semiconductor Manufacturing Company opened its first Japanese fab here, a joint venture with Sony and Toyota called JASM. The second fab broke ground in October 2025, with potential technology leaps from 6nm to 2nm process nodes to serve AI chip customers like NVIDIA and AMD.
The numbers are staggering. Total investment: ¥2.85 trillion ($19 billion). Japanese government subsidy: ¥732 billion. Projected economic spillover: ¥23 trillion over the decade from 2021-2030. Kyushu's IC production hit ¥1 trillion in 2024 for the first time in 16 years. Higo Bank reported ¥310 billion in semiconductor-related lending across 1,458 deals. JASM's workforce reached 2,400 by April 2025, with local hiring creating a "blend of Taiwanese expertise and Japanese precision."
But the transformation has costs. The first fab pumps 7,500 metric tons of groundwater daily—in a region famous for pristine springs. Residents worry about long-term aquifer depletion. Local housing and labor markets are strained. By 2026, Kumamoto faces the classic industrial boom question: can infrastructure scale with investment, or does growth create its own constraints? The prefecture betting Japan's semiconductor revival may test whether Japanese precision extends to managing rapid change.