Kumamoto Prefecture Designated as 'Connected Bond Special Zone' Due to TSMC's Advance, Accelerating Recruitment of Foreign Semiconductor Talents

The Japanese government designated Kumamoto Prefecture as a national strategic special zone on June 4th, aiming to establish a hub for the semiconductor industry, driven by the advancement of TSMC, a major Taiwanese semiconductor manufacturing company. This designation as an 'Industrial Base Formation Linkage Special Zone' is expected to streamline the process of attracting foreign talent by shortening the screening period for foreign residents' stay qualifications.

Since TSMC's entry into Kumamoto Prefecture, related industries have been concentrating, making securing a workforce a critical issue. The recruitment of foreign talent has been on the rise, and this national strategic special zone designation is anticipated to further accelerate efforts in this area.

Japanese Prime Minister Fumio Kishida stated, “We have designated Miyagi and Kumamoto Prefectures as national strategic special zones to cooperate in addressing labor shortages and fostering industrial hubs centered around semiconductors.”

With this designation, the screening period for foreign nationals working in the semiconductor industry is expected to be shortened from the current approximately three months to about one month. In a regular press conference in May, Kumamoto Governor Ichiro Kimura strongly expressed his intention to expand the scope of the initiative, stating, “I want to create a Kumamoto that is chosen by foreign nationals, not only for the semiconductor industry.”

TSMC, the world's largest semiconductor foundry, completed its first factory in Kikuyō, Kumamoto Prefecture, in December 2023. With an investment of approximately 1.29 trillion yen, the company plans to hire a total of 1,700 employees. TSMC also has plans to build a second factory in Kumamoto Prefecture, leading to expectations that the prefecture will emerge as a new semiconductor hub in Japan.

Kumamoto Prefecture anticipates substantial economic benefits from TSMC's presence. Positive impacts are projected across various sectors, including regional economic revitalization, job creation, and increased consumption of local specialty products. However, challenges such as traffic congestion, agricultural land conversion, and environmental issues have also arisen due to TSMC's entry, and Kumamoto Prefecture is working to address these concerns.

Kumamoto Prefecture is expected to strive to transform into a 'desirable city' by leveraging TSMC's presence to drive regional economic development, attract foreign talent, and pursue various initiatives that capitalize on the prefecture's unique characteristics.