Why Did TSMC Choose Kikuyo Town for Its Second Factory Expansion

Learn about the strategic advantages driving this decision, positioning TSMC for continued success in the semiconductor industry.
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The recent announcement of TSMC Choose Kikuyo Town for Its Second Factory Expansion Kumamoto Prefecture, Japan, has captured the attention of the tech industry. This strategic move signifies more than just an expansion; it underscores TSMC’s commitment to innovation, efficiency, and sustainable growth.

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TSMC, a giant in chip manufacturing, leads with innovation worldwide since 1987.
Japan, known for precision engineering and tech innovation, offers a conducive business environment. Its robust infrastructure and skilled workforce make it an ideal hub for high-tech expansion. Renowned for quality, Japan has been a pivotal force in the global semiconductor industry.

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Why Kikuyo Town, Japan?

Kumamoto already hosts numerous Japanese chip factories, including those in Kikuyo, a town nestled amidst cornfields with a population of around 44,000. These facilities produce image sensors for Sony and chip equipment for Tokyo Electron. However, the entrance of TSMC marks a significant shift in scale and impact.

Proximity to Key Markets:

Kikuyo Town’s strategic location offers proximity to key markets in Asia, particularly Japan and South Korea.

With Japan being a significant consumer electronics market and a hub for technological innovation, establishing a factory in Kikuyo Town enables TSMC to strengthen its presence in this crucial region.

By reducing shipping distances and transit times, TSMC can enhance operational efficiency and responsiveness to customer demands, ultimately bolstering its competitive position in the market.

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Diversification of Supply Chain:

In an era marked by geopolitical uncertainties and supply chain disruptions, diversification is paramount for safeguarding business continuity.

TSMC’s decision to establish a second factory in Kikuyo Town reflects its commitment to diversifying its global supply chain.

By decentralizing manufacturing operations and spreading risks across multiple locations, TSMC can mitigate the impact of geopolitical tensions, natural disasters, and other unforeseen events on its production capabilities, ensuring uninterrupted supply of semiconductor products to customers worldwide.

Access to Advanced Technologies:

Japan has long been synonymous with technological prowess and innovation, particularly in the semiconductor industry.

By setting up a factory in Kikuyo Town, TSMC gains access to Japan’s rich ecosystem of research institutions, universities, and technology partners.

This enables collaborative research and development initiatives, fostering the exchange of knowledge and expertise in advanced manufacturing technologies.

By harnessing Japan’s technological prowess, TSMC can accelerate innovation and maintain its leadership position in the semiconductor industry.

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Collaboration with Local Partners:

TSMC’s expansion into Kikuyo Town presents unique opportunities for collaboration with local partners and stakeholders.

Japan boasts a vibrant ecosystem of semiconductor companies, research institutions, and government agencies, providing a fertile ground for synergistic partnerships.

Through strategic collaborations, TSMC can leverage the complementary strengths and resources of Japanese partners to drive innovation, enhance operational efficiency, and unlock new market opportunities.

These collaborative efforts contribute to the growth and dynamism of the semiconductor ecosystem in Japan, while bolstering TSMC’s competitiveness in the region.

Commitment to Sustainable Growth:

As a responsible corporate citizen, TSMC is deeply committed to sustainable growth and environmental stewardship.

TSMC’s second factory in Kikuyo Town showcases its commitment to sustainability.
State-of-the-art facilities and green technologies minimize environmental impact.

Energy-efficient manufacturing processes and waste reduction initiatives are prioritized.
TSMC aims to meet demand for eco-friendly semiconductor solutions sustainably.

Adherence to rigorous environmental standards sets a benchmark in the industry.
This underscores TSMC’s unwavering commitment to environmental responsibility.


TSMC Choose Kikuyo Town for Its Second Factory Expansion, showcases its strategic vision and commitment to excellence.

Capitalizing on Kikuyo Town’s advantages, TSMC ensures proximity to key markets and access to advanced technologies.

Kikuyo Town’s supportive business environment enhances TSMC’s prospects for success and leadership.

As digital demands surge, TSMC’s investment in Kikuyo Town cements its position as an innovative leader.

This move reaffirms TSMC’s dedication to sustainable growth in the semiconductor industry.

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