Japanese retailers expecting demand bump from new TSMC fab in Kumamoto

日本零售商預估對台積電熊本新廠的需求將增加

TSMC’s first Japanese fab expected to begin commercial production in December

TAIPEI (Taiwan News) — As Taiwan Semiconductor Manufacturing Co.’s (TSMC) new fab in the town of Kikuyo located in Kumamoto prefecture nears completion, Japanese retailers are anticipating an increase in consumer demand in the area.

Shopping center and supermarket retailer Izumi now has a Taiwanese food section and a gift area at its store in Kikuyo, a town in Kumamoto prefecture, in preparation for new customers among employees of the new fab and their families, Nikkei Asia reported on Monday (Jan. 1).

“The population in this area will increase very fast. Before the opening of the (TSMC) factory in 2024, if we do not start preparations to serve factory employees and their family members now, we will not be ready in time,” Haraya Noritoshi, general manager of Youme Town Hikarinomori, an Izumi-operated shopping center in Kiyo, told Nikkei.

Izumi renovated the shopping center in July 2023. It set up a Taiwanese food section in the supermarket on the first floor, which has about 20 items, including imported instant food and candies. “We hope our store will be one of the places where Taiwanese food is available,” Haraya told the outlet.

Nitori Holdings, which operates a chain of furniture and household goods stores, opened a location in Ozo, located next to Kikuyo, in November. The company told Nikkei that sales “have been as good as forecast.”

The discount store Mega Don Quijote Kikuyou is also doing well in Kikuyo. “Customers who appear to be Taiwanese have also come to visit our store. We would like to consider selling Taiwanese goods as well, in the future,” Hoshino Shinichi, the store’s assistant manager, told Nikkei Asia.

TSMC is building its first Japanese fab through a joint venture with Sony Semiconductor Solutions Corporation and Denso called Japan Advanced Semiconductor Manufacturing (JASM), which is expected to begin commercial production in December. Kyushu Financial Group estimates that the TSMC facility will add around US$48.4 billion (NT$1.49 trillion) to the Kumamoto economy over the next decade, according to Nikkei Asia.