The Department of Industrial Technology (DOIT) of the Ministry of Economic Affairs (MOEA) hosted the 2025 Taiwan-Japan Technology Summit in Taipei on September 9, 2025, during which Hideyuki Okano, executive director and head of research at the Kyushu Economic Research Center, highlighted the impact of TSMC's Kumamoto plant on the economic and industrial landscape of Kyushu. The semiconductor industry supply chain is estimated to have generated JPY23 trillion (US$156 billion) in economic impact, and Kyushu authorities are accelerating plans to cultivate semiconductor talent, with a target of 1.4 million people.
Kyushu's semiconductor dominance grows
In 2024, the Kyushu Economic Research Center published an economic white paper identifying talent shortage as a major obstacle to Kyushu's industrial development. The region accounts for 15% of Japan's automobile production, 35% of shipbuilding, 21% of agricultural output, and 48% of integrated circuits. The high proportion of integrated circuit production is mainly due to Sony's four CMOS image sensor (CIS) factories in Kyushu. Meanwhile, TSMC's first Kumamoto plant is already in operation, and construction of the second plant is progressing rapidly, suggesting that Kyushu's semiconductor industry may account for a higher share of the national output going forward.
Economic impact exceeds government investment
To enhance the resilience of the semiconductor supply chain, the Japanese government has provided JPY1.2 trillion in subsidies to support TSMC's investments in Kumamoto. According to data from the Kyushu Economic Research Center, Kyushu's GDP is approximately JPY50 trillion, with the semiconductor industry generating about JPY10 trillion in added value. Upstream equipment and material suppliers have invested around JPY6 trillion locally, and if revenue driven by company operations is included, TSMC's Kumamoto facilities are expected to generate JPY23 trillion of economic impact across the local semiconductor supply chain over the next decade, far surpassing the government's JPY1.2 trillion in subsidies.
Ambitious talent cultivation strategy
In addition, the Kyushu government has proposed a three-pronged strategy to strengthen talent cultivation, establish a resilient supply chain, and expand international cooperation for industries in Kyushu. In terms of talent, local high schools and vocational schools produce about 70,000 potential entrants each year for the semiconductor sector, while junior college and university graduates number roughly 37,000, and graduate degree holders about 12,000, for a total of roughly 130,000 per year.
However, these numbers are insufficient to meet growth demands, and thus the Kyushu government and educational institutions are promoting "return-to-education" programs to attract individuals from non-related fields to return to school for specialized courses. About 20 schools participate in these initiatives, including Nagasaki University, Kyushu Institute of Technology, and Kumamoto University. Of particular note, Kumamoto University has established a semiconductor engineering department for the first time in 50 years, specifically due to the semiconductor industry's influence. The Kyushu government aims to cultivate 1.4 million new talents by 2031. In addition, silicon wafer manufacturer SUMCO is also collaborating with the Kyushu Institute of Technology and Saga University.
Article edited by Jerry Chen
