Semiconductor investments to boost South Kyushu economy by 13.8 trillion yen

Semiconductor and electronic device investments in Japan's Kumamoto, Kagoshima, and Miyazaki prefectures are projected to generate an economic ripple effect of approximately 13.8 trillion yen over a ten-year period ending in 2031, according to an estimate by Kyushu Financial Group.

The economic impact includes both capital investment and production effects. Kumamoto Prefecture is expected to see the largest benefit, totaling over 10.7 trillion yen, followed by Kagoshima at 1.6 trillion yen and Miyazaki at 1.5 trillion yen. Key contributors to this growth include TSMC (via JASM), Sony Group, Tokyo Electron, Mitsubishi Electric, Kyocera, and Rohm.

Despite the significant projected growth, the report highlights a challenge regarding regional supply chain integration. Currently, over 70% of manufacturing procurement for these three prefectures is sourced from outside the region, with inter-prefectural procurement between Kumamoto, Kagoshima, and Miyazaki remaining below 2%. Kyushu Financial Group emphasized the need for cross-border cooperation among the three prefectures to strengthen local supply chains and ensure balanced regional development.