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Taiwan’s MOEA plans semiconductor supply chain hub in Kyushu, Japan

The Ministry of Economic Affairs yesterday said it plans to build a semiconductor supply chain in Kyushu, Japan, by creating an industrial district there to assist local semiconductor component makers in supplying parts to Taiwan Semiconductor Manufacturing Co.

Japan and Southeast Asian countries are the government’s first target destinations for building industrial districts, the ministry said.

The government should play a role in helping local businesses go global, Minister of Economic Affairs J.W. Kuo said yesterday.

The ministry’s goal is to help small and medium-sized semiconductor companies quicken their pace in building overseas production lines by solving administrative problems, Kuo said.

“As TSMC is to operate two fabs in Kumamoto and there are a bunch of semiconductor factories in Kyushu, Japan, we are preparing to set up an industrial district in Kyushu to build a semiconductor supply chain there,” he said.

Sony Group Corp, Panasonic Corp and Mitsubishi Corp also have operations in Kyushu, which is known as Japan’s “silicon island,” Kuo said.

“We hope to build it in a short period of time,” he said. “We aim to build an industrial district larger than 50 hectares.”

Asked if the ministry plans to do the same in the US, since TSMC plans to build three fabs in Arizona, Kuo said that Texas might be an optimal location, but “talent shortage” is an issue.

Mexico might be an option, as it has built an information and communications technology industry there, he said.

In response to the concerns about power shortages, Kuo said he is not worried about power constraints as Taiwan Power Co (Taipower, 台電) has installed sufficient capacity for this year and through 2030.

“We have to re-evaluate the power supply after AI [artificial intelligence] takes off, likely during the 2025-2028 period,” Kuo said.

The government should be prepared for power consumption surges when the AI boom drives the deployment of more data centers, which consume massive amounts of power, Kuo said.

The ministry is considering using the capacity of the Ma-anshan Nuclear Power Plant in Pingtung County’s Hengchun Township as a backup to cope with soaring power usages between 2027 and 2029, if the public agrees to restart the nuclear reactors, Kuo said.

That would happen if only related rules were revised, he said. Taipei Times

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