TSMC’s Japan fab spillover benefits may cross $70 billion
The previous estimate only considered the benefits of TSMC’s Kumamoto Fab 1. The latest evaluation includes the impact of the planned construction of Kumamoto Fab 2.
Between now and 2031, the economic spillover effect of TSMC’s operations in Japan’s Kumamoto Prefecture is projected to cross 10 trillion yen (around USD 70 billion), a 60% increase from the previous estimate in August 2023, TrendForce reports.
The fab in Kikuyo, Kumamoto Prefecture, is set to begin mass production by the end of this year, and a second fab is also being planned in the region.
The new impact assessment in September 2024 was reported by Nikkei citing Kyushu Financial Group. It shows Taiwanese semiconductor giant TSMC’s operations in Kumamoto Prefecture may generate an economic spillover to the tune of JPY 11.2 trillion over the next 10 years until 2031.
The previous estimate only considered the benefits of TSMC’s Kumamoto Fab 1. The latest evaluation includes the impact of the planned construction of Kumamoto Fab 2.
The number of companies expected to be set up or invest in the region has increased to 171, approximately double the previous estimate.
Kumamoto’s newly appointed governor, Takashi Kimura, had earlier this year claimed that he would spare no effort to persuade TSMC, the world's top foundry, to establish a third fab in the region.
