Shulou(Shulou.com)11/24 Report--

CTOnews.com, June 14, according to Nikkei Asia, TSMC previously announced plans to build a second factory in Kumamoto Prefecture, Japan, and triggered many related companies to follow. But both enterprises and Kumamoto prefecture government are facing a formidable challenge-the shortage of land.

TSMC is building its first Japanese factory in Kikuyangcho, a traditional agricultural town in Kumamoto prefecture, attracting other projects, such as Sony's large image sensor factory.

▲ Touyuan: at TSMC's annual general meeting last week, TSMC Chairman Liu Deyin said: "from an economic point of view, Kumamoto will be the first choice to build a second factory." Some suppliers have pointed out that TSMC has always preferred to build factory clusters rather than individual factories, such as building two adjacent factories in Arizona.

However, the current Japanese law restricts the development of "urbanization control zones" (such as forests) and generally prohibits the conversion of reserved agricultural land to other uses. Kumamoto is one of the largest grain-producing areas in Japan. Kikuyang-cho and most of the surrounding areas are high-quality farmland, which is difficult to use for other purposes. 85% of the land in Kikuyang-cho is within the control zone.

A survey conducted by Kumamoto Bank at the end of last year found that most companies that had considered expanding into Kikuyangcho abandoned the idea because of land supply problems. The Kumamoto prefecture government has made plans to reserve about 20 hectares of land for about 10 companies in four locations, and the development of these land will be completed in fiscal year 2025 at the earliest. But the demand for industrial land across Kumamoto prefecture is expected to reach 101 hectares, which is far from enough to fill the gap.

Kumamoto prefecture plans to build two 25-hectare industrial parks in the area by fiscal year 2026 at an estimated total cost of 7 billion yen (CTOnews.com Note: currently about 358 million yuan), while TSMC's first plant in Kumamoto covers an area of 21.3ha, about the size of four large baseball fields.

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