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Miyagi Prefecture signs cooperation agreement with TSMC's home city of Hsinchu to boost semiconductor supply chain
Wednesday, March 18, 2026 at 08:55 AM
Miyagi Prefecture has signed a partnership agreement with Hsinchu City, Taiwan, where TSMC is headquartered. The collaboration aims to strengthen semiconductor supply chain ties and attract related industrial demand to the region following the announcement of JSMC (a joint venture with PSMC) building a fab in Miyagi.
Context
On March 18, 2026, Japan’s Miyagi Prefecture signed a basic cooperation agreement with Hsinchu City, Taiwan, the high-tech hub that houses the headquarters of TSMC. The partnership aims to strengthen semiconductor supply chain resilience by facilitating business exchanges between Japanese manufacturers and the approximately 600 companies operating in Hsinchu’s industrial cluster. This move follows a broader trend of Japanese regions seeking deeper ties with Taiwanese firms to revitalize domestic chip production.
The agreement is particularly significant for Miyagi’s industrial strategy after the high-profile collapse of a $5.3 billion foundry project between PSMC and SBI Holdings in the region. By aligning with Hsinchu, Miyagi seeks to capture demand for power semiconductors and logic ICs used in automotive and AI applications. This collaboration supports Japan’s national roadmap to reach 40 trillion yen in domestic semiconductor sales by 2040.
For investors, the deal signals a shift toward local-to-local diplomatic and economic corridors to secure critical components. It leverages Miyagi’s existing infrastructure, such as Tohoku University’s research facilities and the NanoTerasu synchrotron, to attract Taiwanese talent and investment. The partnership provides a strategic bridge for suppliers of equipment and materials to integrate more closely with TSMC's extensive ecosystem.
Sources (12)
memorandum of cooperationHsinchu City cooperates with Miyagi in Japan - Taiwan News宮城県、TSMC本社の新竹市と協定 半導体関連の需要取り込み狙うTaiwan’s Powerchip to Build $5.3 Billion Japan Foundry With SBI - BloombergPSMC reveals key factors behind selection of Miyagi for 12-inch JV fabBehind Taiwanese Chip Makers’ Japan Investment Spree | Nippon.comAnnual Global IC Fabs And Facilities ReportTitle Monitoring semiconductor value chains Author Krzysztof ...
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