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Kumamoto Prefecture proposes record 11.6 billion yen budget for semiconductor cluster development
Tuesday, February 10, 2026 at 08:52 AM
Kumamoto Prefecture has proposed a record-high 2026 budget of 11.6 billion yen to accelerate the development of its semiconductor industrial cluster. The funding aims to enhance infrastructure and support for the growing supply chain hub surrounding TSMC's manufacturing presence in the region.
Context
Kumamoto Prefecture has proposed a record 11.6 billion yen budget for fiscal 2026, its largest allocation ever for developing a localized semiconductor cluster. This funding focuses on infrastructure and supply chain resilience to support TSMC’s massive expansion in the region. In a pivotal shift for the industry, TSMC has confirmed that its second Kumamoto facility will now produce cutting-edge 3-nanometer (3nm) chips, an upgrade from the previously planned 6-12nm nodes. This marks the first time such advanced logic technology will be mass-produced in Japan.
The total investment for this second plant has climbed to approximately $17 billion (¥2.6 trillion). This upgrade is a critical development for the global AI supply chain, as 3nm technology is essential for next-generation AI processors and high-performance computing. With production expected to begin by late 2027, the project cements Kumamoto’s status as a primary manufacturing hub, securing the domestic foundation for the AI era.
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