How are foreign media reporting on the reconstruction of Hinomaru Semiconductor in Kumamoto?



The New York Times has reported on the construction of a TSMC semiconductor factory in Kikuyo, Kumamoto Prefecture.

How Japan Is Trying to Rebuild Its Chip Industry - The New York Times

https://www.nytimes.com/2024/04/09/business/tsmc-kikuyo-japan.html

TSMC, the world's largest foundry headquartered in Hsinchu, Taiwan, built a semiconductor factory in Kikuyo, Kumamoto Prefecture in February 2024 with huge subsidies from the Japanese government. This is the first time since 2018 that TSMC has built a semiconductor factory, known as a 'fab,' outside of Taiwan.



Local streets, shopping malls, and hotels have installed signs and guidebooks written in traditional Taiwanese characters, and Kikuyo Town's foreign population is expected to double by 2023.

The New York Times points out that the high-tech factory town of Kikuyo, where construction of a second factory is also progressing at a rapid pace, is a microcosm of the rapidly changing semiconductor business.

For years, the supply chain for semiconductors that power the world's smartphones, cars and even fighter jets has relied on a handful of factories in Taiwan, which China claims as part of its territory.

But that is set to change dramatically as the COVID-19 pandemic causes supply chain disruptions, the Chinese government's hardening stance toward Taiwan, and a global chip shortage expose the risks of this concentrated industry.

In response to governments around the world trying to attract semiconductor companies, TSMC has been working to decentralize its production to the United States, Japan, and Germany. Below is a map compiled by TrendForce, a Taiwanese research company, showing the locations of TSMC's semiconductor factories.



Japan, once a semiconductor powerhouse, has spent about 4 trillion yen to revive its semiconductor industry, with a particular focus on chips for automobiles, far

more than the United States or Germany as a percentage of GDP. About a third of this subsidy went to TSMC's operations.

Ray Yang, director of the semiconductor research department at the Industrial Technology Research Institute in Taiwan, said, 'It is clear to everyone that the Japanese government is providing comprehensive support for the entire ecosystem, especially the supply chain including factories, construction, transportation, and airports. Top-down promotion was essential to efficiently build the entire supply chain.'

In contrast to the construction of the factory in Arizona, USA, which has been delayed due to a lack of personnel and financial problems, the TSMC factory in Kikuyo Town opened ahead of schedule, and construction of a second factory has already been decided.

Kikuyo Town Mayor Takatoshi Yoshimoto told The New York Times that Sony, which has been manufacturing in the town for over 20 years, backed the town's efforts to attract TSMC.



TSMC has brought over 400 workers from its home country and pays wages about 30 percent higher than other manufacturers in the region, leading to higher wages for other companies. Dozens of job advertisement fliers have been posted in the Kikuyo town hall, seeking workers for semiconductor factories and their suppliers.

Just as securing human resources is an issue, so is securing housing for workers, with rising land and housing prices worrying local residents. Shogo Okuda of Shichiro Construction's Kumamoto branch, who grew up in the area, said, 'There's no other place in Japan that's growing like this.'

In particular, TSMC workers coming to Kikuyo from Hsinchu and Tainan, Taiwan's core semiconductor manufacturing hubs, are looking for ready-to-move-in, fully furnished properties - something common in Taiwan but rare in Japan.

'They call me and say, 'Just go to Kumamoto and find a house,'' Cake Liao, a Taiwanese real estate agent who helps find housing for these workers, told The New York Times at a model home in Kumamoto. 'To them, this is the new Hsinchu City.'

in Hardware, Posted by log1l_ks